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Finkelstein Thompson LLP Files Securities Class Action Lawsuit Against Rentech, Inc.

^{Published on 2009-12-31 04:00:24 - Market Wire}
 

WASHINGTON--([ BUSINESS WIRE ])--Finkelstein Thompson LLP ("Finkelstein Thompson") has filed a class action lawsuit in the United States District Court for the Central District of California on behalf of investors who purchased the publicly traded securities of Rentech, Inc. (AMEX: RTK) ("Rentech" or the "Company") between February 8, 2008 and December 15, 2009, inclusive (the "Class Period"). Finkelstein Thompson believes that this was the first securities class action complaint filed in connection with this subject matter.

Finkelstein Thompson welcomes inquiries from institutions or individuals interested in acting as "lead plaintiff" in this litigation. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. The deadline for moving for such appointment is 60 days from December 30, 2009. If you are interested in acting as lead plaintiff, or if you have any other questions about the litigation, please contact Donald J. Enright, Esq., by email at [ contact@finkelsteinthompson.com ] or via toll-free telephone at (877) 337-1050.

Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges Rentech and certain of its officers and directors ("Defendants") with violating the Securities Exchange Act of 1934. Rentech is a provider of "clean energy solutions" and developer of synthetic fuels and electric power from carbon-containing materials such as biomass, waste and fossil resources.

The complaint alleges that, throughout the Class Period, defendants made materially false and misleading statements regarding the Company's financial results and compliance with Generally Accepted Accounting Principles ("GAAP"). Specifically, the complaint alleges that defendants failed to disclose: (a) certain deposit payments associated with the Company's forward contracts for natural gas purchases were incorrectly reported on Rentech's balance sheets as inventory rather than deposits; (b) as a result, the Company's financial results were overstated during the Class Period; (c) the Company had failed to properly recognize deposits on its balance sheets in violation of GAAP; (d) the Company lacked adequate internal and financial controls; and (e) as a result of the above, the Company's financial statements during the Class Period were materially false and misleading at all relevant times.

On December 14, 2009 and December 15, 2009, Rentech announced that the Company had improperly reported certain deposit payments as inventory on its balance sheets in various filings with the SEC in 2008 and 2009. In response to the Company's announcement, Rentech shares plunged to $1.27 a share on December 18, 2009, representing a 25% drop from the stock's opening price on December 14, 2009.

Plaintiff seeks to recover damages on behalf of all purchasers of Rentech securities during the Class Period. The plaintiff is represented by Finkelstein Thompson. With offices in Washington, D.C. and San Francisco, Finkelstein Thompson has spent over three decades delivering outstanding representation to institutional and individual clients in financial litigation, and has been appointed as lead or co-lead counsel in dozens of shareholder class actions. Indeed, the firm has served in leadership roles in cases that have recovered over $1 billion for investors and consumers. To learn more about Finkelstein Thompson LLP, please visit [ www.finkelsteinthompson.com ].