Milton Ariail, Et Al. V. Xethanol Corporation, Et Al. 06-CV-10234
UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK } } MILTON ARIAI' L, Individually And } CIVIL ACTION NO . 46-10234 On Behalf of All Others Similarly Situated, }} } } Plaintiff, } CLASS ACTION COMPLAINT FOR VIOLATIONS OF } FEDERAL SECURITIES LAW S vs, ) XETHANOL CORPORATION, LAWRENCE } S. BELLONE, CHRISTOPHER D'ARNAU D- } TAYLOR AND ,IEFFERY S. LANGBERG, ) JURY TRIAL DEMANDED Defendants . ) INTRODUCTIO N This is a federal class action on behalf ofd pu rchasers of the common stock of Xethano l Corporation ("Xetllanol" or the "Coinpany") between January 31, 2006 and August 8, 2006 , inclusive (the `Class Period"), seeking to pursue remedies under- the Securities Exchange Act o f 1934 (the "Exchange Act") . As alleged herein, defendants published a series of materially fals e and misleading statements that defendants knew and/or recklessly disregarded were materiall y false and misleading at the time of such publication . and that omitted to reveal materia l information necessary to make defendants' statements, in light of such material omissions, no t materially false and misleading OVERVIEW 1 Xethanol engages in the production and marketing of ethanol and its co-product s in the United States . Ethanol. a clean burning, renewable fuel, is used as a primary gasolin e additive. As a result of the recent rise in gasoline prices, to over $3 .00 per gallon in man y places, during 2006, alternative energy companies such as Xethanol suddenly received th e attention of the national press, and became a favored investment for many shareholders . ?. Helping to propel the trading price of its shares, throughout the Class Period . Xethanol distinguished itself from other ethanol producers by its ability to develop and optimiz e "biomass" as the substantial raw material for ethanol production ; as well as corn, the mor e traditional raw material used in ethanol production.
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