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Law Offices of Howard G. Smith, Representing Investors of Rentech, Inc., Announces Class Action Lawsuit

^{Published on 2010-01-06 19:20:06 - Market Wire}
 

BENSALEM, Pa.--([ BUSINESS WIRE ])--Law Offices of Howard G. Smith, representing investors of Rentech, Inc. ("Rentech" or the "Company") (AMEX:RTK), has filed a class action lawsuit in United States District Court on behalf of a class (the "Class") consisting of all persons or entities who purchased Rentech securities between February 8, 2008 and December 15, 2009, inclusive (the "Class Period"). The class action lawsuit was filed in the United States District Court for the Central District of California.

"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."

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 Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded and failed to disclose or indicate the following: (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 announced 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." This news caused Rentech stock to decline approximately 11% from its December 14, 2009, closing price of $1.64 per share, to close on December 16, 2009 at $1.47 per share.

No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased Rentech securities between February 8, 2008 and December 15, 2009, you have certain rights, and have until March 1, 2010, to move for lead plaintiff status. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. 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 Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215)638-4847, Toll-Free at (888)638-4847, by email to [ howardsmith@howardsmithlaw.com ] or visit our website at [ http://www.howardsmithlaw.com ].