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Glancy Binkow & Goldberg LLP, Representing Investors Who Purchased Rentech, Inc., Announces Class Action Lawsuit and Seeks to R

^{Published on 2009-12-30 18:00:19 - Market Wire}
 

LOS ANGELES--([ BUSINESS WIRE ])--Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a class action lawsuit in the United States District Court for the Central District of California on behalf of a class consisting of all persons or entities who purchased the securities of Rentech, Inc. ("Rentech" or the "Company") (AMEX:RTK) between May 9, 2008 and December 14, 2009, inclusive (the "Class Period").

"a prior incorrect classification of cash deposits required by forward gas purchase contracts as inventory, and reclassifies them as deposits on gas purchase contracts within current assets on the balance sheet."

A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at [ shareholders@glancylaw.com ], or visit our website at [ http://www.glancylaw.com ].

The Complaint charges Rentech and certain of the Company's current and former executive officers with violations of federal securities laws. Rentech provides clean energy solutions to produce ultra-clean synthetic fuels and chemicals. The Company owns and licenses a proprietary technology which converts carbon-bearing gases derived from various biomass, waste and fossil resources into hydrocarbons, which can be processed and upgraded into ultra-clean synthetic fuels, such as military and commercial jet fuels, and ultra low sulfur diesel fuel, as well as specialty waxes, feedstocks and chemicals. The Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning Rentech's business, prospects and financial performance were materially false and misleading. Specifically, defendants made false and/or misleading statements and/or failed to disclose: (1) that during the Class Period the Company improperly classified cash deposits required by forward gas purchase contracts as inventory; (2) that, as a result, the Company's financial results were overstated during the Class Period; (3) that the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (4) that the Company lacked adequate internal and financial controls; and (5) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.

On December 14, 2009, Rentech shocked investors when it announced that the Company would restate its previously reported annual and quarterly results for fiscal year 2008 and for the first three quarters of fiscal year 2009, to correct "a prior incorrect classification of cash deposits required by forward gas purchase contracts as inventory, and reclassifies them as deposits on gas purchase contracts within current assets on the balance sheet."

As a result of this news, Rentech stock fell approximately 11%, on unusually heavy trading volume, from its December 14, 2009 closing price of $1.64 per share, to close on December 16, 2009 at $1.47 per share. Since the Company's December 14, 2009 disclosure, the price of Rentech stock has declined $0.41 per share, or 25%, as of December 29, 2009.

Plaintiff seeks to recover damages on behalf of class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.

If you are a member of the class described above, you may move the Court, no later than 60 days from the date of this Notice, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224, by e-mail to [ shareholders@glancylaw.com ], or visit our website at [ http://www.glancylaw.com ].