Alternate Energy Can't Shake Inflated Stock Action

Law360, New York (December 20, 2011, 1:28 PM EST) -- An Idaho federal judge on Monday denied Alternate Energy Holdings Inc.'s bid to dismiss a putative class action claiming it improperly used stock promoters and issued false press releases to artificially inflate its stock price, finding that investors had adequately pled causation.

U.S. District Judge B. Lynn Winmill rejected Alternate Energy's contention that the investors' arguments connecting the alleged misrepresentations and their losses were doomed because of intervening causes behind a share price plunge, including the purportedly “reckless conduct” of the U.S. Securities and Exchange Commission....
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