Xethanol Loses Bid To Toss Securities Action

Law360, New York (September 10, 2007, 12:00 AM EDT) -- Only a few weeks after he dismissed a shareholder derivative suit against Xethanol Corp.'s board of directors, a federal judge has sustained a consolidated securities suit against the company itself.

Judge Harold Baer, Jr. of the U.S. District Court for the Southern District of New York on Friday denied Xenathol's motion to dismiss a putative class action accusing the ethanol research and production company of deliberately misstating its ethanol production capabilities in order to raise its stock price.

The suit also accuses two former Xethanol officers...
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