The problems for Corporate Resource Services Inc (OTCMKTS:CRRS) are not seeming to get over in the near future. According to a recent report, The Rosen Law Firm has decided to file a security class action against the company on behalf of those investors who bought common stock of the company. The timeline of these buying activities is claimed to be between July 1, 2014 to February 6, 2015.
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The lawsuit aims to recover the damages of investors of Corporate Resource Services Inc (OTCMKTS:CRRS) under the federal security law. Those who want to join this initiative can get in touch with official authorities or go the official link and file their complaints. The suit for the Eastern District of New York is still pending in the U.S. District Court.
The authorities have not yet finalized any class in the action mentioned above, which means that no applicant can be represented by a counsel unless he decides to retain one. The applicants have all the liberty to be present and do nothing at this point. In case someone is determined to take any legal action as soon as possible, then he/she can retain a counsel and take necessary actions.
The lawsuits claim that Corporate Resource Service misled its investors by representing false information and hiding the truth. As per the reports, its co-employer, Tri-State Employment Services, Inc. had an unpaid federal tax liability. Had it disclosed the information, the investors would be in a better situation to re-think about their decision to go with the Corporate Resource Service. Reports claimed that this information would have impacted the entire proceeding negatively; therefore, Corporate Resource Services Inc (OTCMKTS:CRRS) didn’t disclose it to investors. As soon as this fact came to light, the price of Corporate Resource Service’s shares dropped significantly; hence, proved to be wrong investment for all the shareholders.