Defendant Industrial Enterprises of America is an automotive aftermarket supplier founded in 1974. Their products range from basics like anti-freeze and motor oil, to charcoal fluids and packaged refrigerants used in the automotive and dusting markets.
The suit brought against IEA stems from both a blatant disregard for basic accounting principles and an overall scheme to dupe investors into a false sense of security with IEA’s financial future. This fairy tale came to a quick end starting with IEA’s first bit of negative news, an October 2007 Press Release stating IEA’s need to review their current accounting practices. The aftermath of IEA’s followup press release in November of 2007, explaining the need for revenue restatements, entity re-classifications and an increase in litigation reserves, was a devastating freefall of the companies share prices, from $2.19 to a closing price of $.80, a staggering 63% reduction in value.
This is a federal securities class action on behalf of a class consisting of all persons, other than defendants, who purchased common stock of IEAM between November 14, 2006 through November 8, 2007.
Complaint:Â IEAM Complaint