The Rosen Law Firm Files Securities Class Action Charging SpongeTech Delivery Systems, Inc. With Securities Fraud -- SPNGE.OB, SPNG.OB
By: Marketwire .
Oct. 9, 2009 08:00 PM
NEW YORK, NY -- (Marketwire) -- 10/09/09 -- The Rosen Law Firm today announced it has filed a class action lawsuit on behalf of all purchasers of SpongeTech Delivery Systems, Inc. ("SpongeTech" or the "Company") (OTCBB: SPNGE) (OTCBB: SPNG) stock between April 15, 2008 and October 5, 2009, inclusive (the "Class Period").
To join the SpongeTech class action, go to the website at http://www.rosenlegal.com or call Laurence Rosen, Esq. or Phillip Kim, Esq. toll-free at 866-767-3653 or email firstname.lastname@example.org or email@example.com for information on the class action.
The case is pending in the United States District Court for the Southern District of New York as case no. 09-CV-8616 (JGK). You can obtain a copy of the complaint from the clerk of court or you may contact counsel for plaintiffs Laurence Rosen, Esq. or Phillip Kim, Esq. toll-free at 866-767-3653 or email firstname.lastname@example.org or email@example.com.
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. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER. YOU MAY RETAIN COUNSEL OF YOUR CHOICE.
The complaint charges that SpongeTech, its CEO Michael Metter, CFO Steven Moskowitz and director Frank Lazauskas violated federal securities laws by issuing false and misleading financial information to investors and engaging in a stock manipulation scheme.
The complaint alleges that SpongeTech misrepresented its sales revenues, failed to disclose alleged short selling of the Company's stock by certain, and improperly forged opinion letters of counsel in order to permit the sale of the Company's stock. The complaint further alleges that as the truth of the scheme was disclosed publicly the price of SpongeTech stock fell dramatically -- damaging investors.
As a result of this alleged misconduct, the Company is the subject of a formal SEC investigation and the SEC has temporarily suspended trading in the Company's stock.
A class action lawsuit has already been filed on behalf of SpongeTech shareholders. If you wish to serve as lead plaintiff, you must move the Court no later than December 8, 2009. If you wish to join the litigation or to discuss your rights or interests regarding this class action, please contact plaintiff's counsel, Laurence Rosen, Esq. or Phillip Kim, Esq. of The Rosen Law Firm toll free at 866-767-3653 or via e-mail at firstname.lastname@example.org or email@example.com.
The Rosen Law Firm focuses on prosecuting securities class action litigation and actions involving financial fraud. The Rosen Law Firm represents investors throughout the globe concentrating its practice in securities class actions.
Laurence Rosen, Esq.
Phillip Kim, Esq.
The Rosen Law Firm P.A.
Tel: (212) 686-1060
Weekends Tel: (917) 797-4425
Toll Free: 1-866--767-3653
Fax: (212) 202-3827
350 5th Avenue, Suite 5508
New York, New York 10118
I only buy used myself, as I don't like loans, and I think it's the best bang for the buck. I don't make a whole lot of money either, so not paying interest is a bonus. Currently, I work at a place where folks come and go so fast (ie. emails like, I need to leave the country at the end of the week, need to sell my XXXX). I get some great deals, but that will end at my next job. The best is being in a position where you can take your time. If you just put the word out to a lot of folks you're looking for XXX, look for signs, hammer craigslist, and have a decent mechanic friend, you can get cars at great discounts. I've paid 1/2 of blue book on my last 2 vehicles.
I also saw a report on what the top 10 cars cost you in the long haul in terms of gas/maintenance/parts... honda fit was in the list.
You guys ever look at what those hypermilers do? lol. I have one guy at my brazilian jiu jitsu class squeezing out 50+ mpg on his honda civic.
This further hammers the nail in that I have to strictly follow my own trading style, take profits at targets. Cut losses when technicals falil. I had an ok one on this one.
When I'm done writing this funding app, I'm going over all of my penny trades in detail. In my head I can see I'd be way better off (not complaining, as I'm definately green on these) following plans to a T. I think each time you switch trading styles, you have to give yourself some room to try other ideas, though. I've done that. Then review your plans. Review your trades (cause you know you didn't always follow the plans), then revise, but not overfit the data.
Should be interesting.
oh yeah, comment... looks like the # will remain on the ticker at scottrade for a bit, and it'll be tough getting out of this one. I can't sell MGLG at all... there's noone trading it, I slept thru the first days we could get out. My only comment is that I'm selling it all the first chance I get.
Well, I have a few more... money management - I'm more and more of a believer on this one. Even last night while reading schwager's first book, the first person interviewed said his advice to new traders was no more than 5% of portfolio on one idea... idea encompasses sector... so like I'm buying gold stocks, so no more than 5% in gold stocks. Now with a smaller account, you obvioulsy have to go much larger than 5%, but also, you have far less to lose in that case when you consider lifetime income... Even the one service that I pay for, the guy also stresses the 5% limit, and 1-2% for options. He was on a streak in 2007-2008, every stock trade (there was a ton) averaged a 10% gain, and every option trade a 100% gain). He consistently warned about not going in big. When the streak ended, some folks in the chat room were obvioulsy going in much bigger... particularly on teh double leverged ETF trades, which were a new trading style, and the peculiarities of those ETFs - they are not designed whatsoever to be held for intermediate or long term - ruined those people.
So, my comment is that the majority of these (when I say majority, I really mean it) of these companies are companies that are doing poorly, some are scams. Very few will end up being the real deal. That said, I'm still a fan of them, but also stress that (*I believe - note this is all opinion) that small bets on a lot of them will keep you in the game longer.
Interesting too... I read a lot of these guys play poker. So I decided I need to learn to play. I'm reading a book from one of the champs. He found early on that you fold the majority of the time, and he made a fortune just off of playing 10 different opening hands... sounds like the same strategy.
Last edited by Dr. Dave; 10-09-2009 at 10:26 PM.
Man, if there's one thing I dislike more than stepping bare-footed in the muckety muck that's at the bottom of a pond...it's...
Oh, never mind...
I should note that I only read the headline of *this* post -- no offense, but there's not a darn thing that I can do about anything until Monday...
There's steak-shibobs marinating and a nice cocktail in my hand...so, yeah...where's the Jimmy Buffet?
by the way, Shots, just so you know -- the wagon is a function of my losing weight goals...not as a function of being a "Friend of Bill W". Though, I most definitely appreciate the motivation.
As of now - the tentative thought process re: alcohol is more cutting it mostly out sort of arrangement. I think that I've been intoxicated maybe a half dozen times this year. And for me, yeah...that's saying something.
The short end of the long story is that I gained a ridiculous amount of weight after an injury last year -- since January, though, I've lost nearly forty pounds - which is everything that I gained.
It's amazing how much a guy will gain by doing nothing but lay in bed or the recliner for six months; all the while self-medicating with booze and butter.
It's all good, now. I'm two pounds from resetting my goal to my high school weight <--- yeah, I'm cool.
Tib -- You're okay, man.
Dave: go into the google monster and do a search for "find a lease". My old neighbor used to get screaming deals on leases! I'm sure he still does...
I'll send 'im a note. In a nutshell, his last lease cost him next to nothing. The guy (that he got the car from) had to get out of the lease, pronto!
nothing down & the guy gave him a $ grand to take it over...
not a bad deal -- and for him, he used it for business, so it was a write off anyway...
Man -- we need to schedule a "Friends of Bill H" convention...
Yup, I still have shares. Was being a good boy for the most part on this one and selling into strength. I have 25% of my shares left, and the only mistake I made was just before getting ready to unload 5% more at around 0.065, I saw that my last sell was at that level, and then the price moved to 0.064, and thought I'd try to sell a tick higher. It was really bugging me that the run made my position/free money ratio shift... and money management rules dictate, that I should take more off the table. Now I see why those rules exist. But no big complaints - great trade for me so far. If it goes to zero, I still have like a 700% or so gain on what I cashed out. Things get tricky when you see your shares up 2400%. Example, the 5% I was going to sell last was actually worth more than the first sell of 33%.
back to what to do... let's be a little rational, keeping in mind anything can happen.
The technical event that I based the trade on is now gone... the next will be if it were to form some sort of pattern, need to look at the chart. So technically, not a real reason to buy/sell or hold, other than sell 50% of what's left for money management or something else, or dump it all.
The fundamental events are that it didn't have a great balance sheet I guess, but has some products out on the market, and a new product that may get steam from...
The news event - the passing of the law... now... the run up on...
The rumor event has happened on that one, and we hit our high... the actual passing of the law is the news... independent of the balance sheet report, who knows what happens if the law is passed anyway? It could have tanked on the money that bought the rumor, or got another bump up from late avid buyers.
Now we have a suppressed price from the balance sheet, and no days of rumor left.
If the news were to have caused one last run, we'll see it but starting at these low prices caused by the balance sheet, and in that case... I'm selling more, to stick to the money management scheme.
If the news were to have the dump effect, and it's compounded by the balance sheet low prices - I'll likely not need to sell, because the price will be low enough to satisfy money management.
So tally it up...
1) technical event: done (haven't looked at chart, but the original is gone)
2) fundamental event (balance sheet): done
3) rumor event: done
4) news event (signing): to be determined
My take then is base your decisions now on what you would do on monday according to the reaction to 4) news event (signing): to be determined
Something like -
1) what will I do if it shoots up to where I bought
2) what will I do if it shoots up 1/2 way
3) what will I do if there is little to no change
4) what will I do if it tanks hard
if you want to stay in the game, you need to keep a price tag on how many shares you want to keep in those 4 scenarios.
I'm willing to only keep "1 poker hand's worth in it.. ie. the ante"
Then modify later based on technicals and other events I guess.
As the story progresses, I'm sure there will be new signs on how to get back in. I still think this one, unless it's another fraud money reporting/manipulation wise, is still a good one to keep an eye on. Has real products supposedly, and it has run before. That's my take. I'm in at 0.0022, so while there is some leeway, the money is the money. I'd rather keep as much as I can.
Last edited by Dr. Dave; 10-09-2009 at 11:03 PM.
they come up with different prices on one site, example, an altima hybrid that I found
1) effective monthly payment $514
2) actual monthly payment $806
then an incentive. $7000
They note that after the transfer, you pay the actual monthly payment, and that is used for tax purposes.
So... i blue booked the car, and the actual monthly payment (19,000) reflects an amount that you'd buy on the street...(20,000) the effective totals to a significant savings (12000). I'm rounding numbers.
so my question is... do you pay the actual monthly payment, then at the end of the term, they kick you back $7000? and you keep the car?
Trying to be helpful. Interesting read, that first interview... something I should share... The guy said also that if you have a trading style, try not to mix it with that of others, you'll get the bad sides of both. I've tried to mix in a little recently, and it hasn't panned out. Now, if you are new, you have to find a trading plan to begin with... which is why I keep saying that if you are new, keep the trades small... $200-$250 is fine. That's how I started with these, cause I was wiping out my account the first 2 times I tried to trade options going in with large trades.
I just looked at the chart, been busy all day, price closed exactly on the support line I drew yesterday. Let's see if it holds. That's pretty key for anyone holding after monday.
I hate those ticks... will have to switch to log chart next time.. I see patterns more clearly on arithmetic charts, but need to use both, as I'm missing info by not doing so.