Who's suing who? GrowLife (PHOT) stinks, Barrick Gold (T.ABX) cagey?

Gaalen Engen Gaalen Engen, Stockhouse.com
0 Comments| April 25, 2014


Advanced Emission Solutions (NASDAQ:ADES, Stock Forum), a Highlands Ranch Colorado-based provider of environmental technologies and specialty chemicals to the coal-burning utility industry, is feeling the heat as Harwood Feffer LLP, the Law Offices of Howard G. Smith, Johnson & Weaver LLP and Pomerantz LLP have launched investigations into whether the board breached its fiduciary duties or violated state laws when the company filed a Form 8-K announcing a restatement of financial results yesterday that showed a reduction of revenues of over $10.0 million and an increase in pre-tax losses of $2.0 million. The company recognized weaknesses in its accounting practices, I never would have guessed.

 

Barrick Gold (TSX:ABX, Stock Forum), a Toronto-based gold and copper producer engaged in exploration and mine development, isn't feeling the love in Ontario as Koskie Minsky LLP and Sutts, Strosberg LLP are taking a run at the company and certain of its directors over allegations that Barrick misrepresented the progress and feasibility of its Pascua-Lama project located in Chile and Argentina after the Chilean government halted construction at the project citing environmental violations on April 10, 2013. The company followed up the cease order with the announcement that it had an after-tax impairment charge of $4.5 to $5.5 billion and it was indefinitely suspending operations at Pascua-Lama. It is alleged that investors lost billions to this oversight when Barrick allegedly forgot to mention the challenges at the project before the proverbial crap hit the fan.

 

GrowLife (OTT:PHOT, Stock Forum), a medical marijuana firm living with a SEC trade halt over concerns regarding the accuracy and adequacy of marketplace info and the potentially manipulative transactions in the company's shares, finally resumed trading today after the U.S. trading regulatory authority announced it was NOT investigating the company, nor was it interested in asking questions of management. However the company seems to have jumped from the frying pan right into the fire as further allegations surfaced when a Seeking Alpha writer reported that GrowLIfe's directors were paid two million shares at a ~97% discount of $0.02 per share when the trading price was $0.58 per share. Hmmm, that's a head scratcher, but wait, it's not over. Two of the company's directors, CEO Sterling Scott and CFO John Genesi (who has only been with the firm since July 2013) were compensated to the tune of $1.1 million when GrowLife reported $4.9 million in sales, giving the two of them ~24% of the total revenue. I'm thinking somebody has their hand in the cookie jar and maybe somebody else, the SEC, should get off their butt and resume an investigation.

 

ON THE SCAM FRONT

 

Wallis Partridge LLC is sleazing by phone and soliciting residents of British Columbia, claiming that it is a Hong Kong Based dealer that provides wealth management with the offer of high yielding investment opportunities. Nobody can offer that with any guarantee. Anyway, these con artists told their hapless victims that they were able to open accounts through the company's representatives. The BCSC wants everyone to know that these thieves are not registered in BC to trade in, or advise on, securites or exchange contracts and they urge residents to exercise extreme caution when dealing with companies of this ilk. 



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