Company: Genius Products, Inc
Ticker Symbol: OTC:GNPI ; OTC:GNPR
Class Period: Dec-31-08 to Apr-3-09
Date Filed: Apr-27-09
Lead Plaintiff Deadline: Jun-26-09
Court: State of California in Los Angeles
Allegations:
An investor in Genius Products, Inc., has filed a proposed securities class action in Superior Court for the State of California in Los Angeles on behalf of investors who purchased shares of Genius Product, Inc., between December 31, 2008 and April 03, 2009. The complaint is filed against Genius Products, Inc, GNPR Investments LLC and certain members of the board of directors among others, over breaches of fiduciary duty. According to the complaint the plaintiff alleges that Genius Products had approximately 68 million publicly traded shares. Genius Products owned Genius Products LLC together with the companies owned by Harvey and Robert Weinstein. Genuis Products allegedly issued certain warrants to the companies owned by Harvey and Robert Weinstein.
As a result of several transactions Genius Products indicated in a SEC filing that it “may have an obligation to issue up to 6,491,060,289 shares of common stock”. Then Genius Products was required to conduct a 500 to 1 reverse stock split on April 03, 2009 to ensure it did not exceed the amount of shares its Certificate of Incorporation authorized it to issue. The plaintiff alleges that class members never had the opportunity to vote on the stock split and investors had the value of their holdings dramatically reduced by the transactions by the defendants and at no time the class members permitted to vote on these massively dilutive transactions.
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