COLCHESTER, Conn., Nov. 1, 2006 (PRIMEZONE) -- On November 1, 2006, Scott+Scott, LLC, filed a class action against Xethanol Corp. ("Xethanol" or the "Company") (AMEX:XNL) and certain officers and directors in the U.S. District Court for the Southern District of New York. The action is on behalf of Xethanol securities purchasers during the period January 31, 2006 and August 8, 2006, inclusive (the "Class Period"), for securities law violations. The complaint alleges that defendants made false and misleading statements and material omissions regarding the Company's financial statements. As a result, the price of the Company's securities was inflated during the Class Period, thereby harming investors.
If you purchased Xethanol securities during the Class Period and wish to serve as a lead plaintiff in the action, you must move the Court no later than December 26, 2006. Any purported class member may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott (scottlaw@scott-scott.com, 800/404-7770, 860/537-5537) or visit the Scott+Scott website, www.scott-scott.com, for more information. There is no cost or fee to you.
According to the complaint, Xethanol engages in the production of ethanol and its co-products in the United States. During the class period, the complaint alleges that defendants concealed that: (a) the integrity and ethical credibility of defendants was in question; (b) defendants were unjustifiably optimistic and aggressive in the description of Xethanol's ethanol business, including the management and utility of its facilities, notably the Permeate facility in Hopkinton, Iowa; (c) defendants employed flawed and defective accounting practices and internal controls which served to conceal highly suspect related-party transactions during the Company's formative stages; and (d) the fraudulent nature of defendants' efforts to develop viable processes and commercialize "biomass ethanol" would make it difficult for analysts and investors to evaluate the Company's future prospects, earnings and income for present and future quarters.
The plaintiff is represented by Scott+Scott, a firm with significant experience in prosecuting investor class actions. The firm dedicates itself to client communication and satisfaction and currently is litigating major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, charities, foundations, individuals and other entities worldwide.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca