Hagens Berman Sobol Shapiro announced the filing of a class-action securities lawsuit on behalf of a proposed class of investors who purchased securities issued by Mantria Corporation ("Mantria") and related entities during the period from September 1, 2007 through November 16, 2009 (the "Class Period"), inclusive.
Investors who wish to serve as lead plaintiff in the case must move the court no later than sixty days from the date of this notice. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Class members need not seek to become a lead plaintiff in order to share in any possible recovery.
Hagens Berman's lawsuit, filed Nov. 15, 2011 in the United States District Court for the District of Colorado, alleges that certain of Mantria's former officers violated the Securities Exchange Act of 1934, the Pennsylvania Securities Act and the Colorado Securities Act, and also includes various common law claims.
The Complaint alleges that Mantria, through 11 operating divisions and 32 wholly owned or affiliated companies, purported to be primarily engaged in the development of several planned residential communities in rural Tennessee, and the production and sale of "biochar" – a charcoal substitute made from organic waste. In addition to these primary ventures, Mantria also claimed, in various investment offerings, to have diverse operations ranging from mortgage banking to hip-hop record production.
The Complaint alleges that Mantria raised more than $54 million from more than 300 investors in securities issued by Mantria Corporation or Mantria-related entities, including the following:
- Infinite Cash Entertainment, LLC;
- Mantria Renewable Energy Fund, L.P.;
- Mantria Financial, LLC ;
- Mantria Place Renewable Energy Site Development, L.P.;
- Mantria Industries, LLC;
- Carbon Diversion Carlsbad New Mexico Manufacturing Plant, LLC; and
- Mantria Place Eco Village Carbon Fields
The complaint further alleges that despite Mantria's supposed business empire, its operations generated no revenue with which to pay the touted extraordinary investment returns. Instead, Mantria only paid investor returns using offering proceeds from new investors in a classic Ponzi scheme fashion, in violation of federal and state laws. The plaintiff in the case seeks to recover damages on behalf of the class and is represented by Hagens Berman Sobol Shapiro LLP and Saltz, Mongeluzzi, Barrett & Bendesky, P.C.
