Raleigh News & Observer – A small Triangle company has accused a group of hedge funds of scheming to manipulate its stock for profit.
Cyberlux, a Research Triangle Park company that designs and makes lighting, has sued the hedge funds, alleging fraud, securities violations and breach of contract, among other claims. The lawsuit was filed in federal court in New York.
According to the lawsuit, the scheme resulted in Cyberlux losing hundreds of millions of shares of its stock that currently are worth nearly $2 million. Cyberlux, whose shares are traded over the counter, has 507 million shares outstanding.
The “predatory and illegal trading scheme,” according to the lawsuit, also “has forced Cyberlux’s stock price to fluctuate dramatically and to ultimately decrease, causing serious erosion of the equity value of Cyberlux in an amount to be determined at trial.”
