Investors proceed against Taronis Technologies for false announcement

On April 8, 2020, Chief United States District Judge for the District of Arizona allowed investors to proceed with claims that Taronis Technologies Inc. and its directors engaged in a fraudulent scheme to inflate the market price of the company’s common stock by announcing the purported existence of a material contract with a municipal entity that was later revealed to not exist.  The complaint alleges that the false announcement was made in part to boost the company’s common stock price to prevent the company from being de-listed from the Nasdaq stock exchange.  The decision issued by Judge Snow importantly noted, “While defendants claim they innocently believed the press release was true and had no motive to mislead investors in light of the approved reverse stock split, the facts alleged give rise to an inference that defendants intentionally or with deliberate recklessness made false or misleading statements to investors.”

The complaint asserts claims under Sections 10(b) and 20(a) the Securities Exchange Act of 1934 and is on behalf of all purchasers or acquirers of Taronis common stock between January 28, 2019 and February 12, 2019.  Wolf Haldenstein serves lead counsel for the investors in the litigation.

Read the April 8 Order here.