SOURCE: Brower Piven, A Professional Corporation

November 14, 2009 09:12 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $200,000 From Investment in VeraSun Energy Corp. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the January 11, 2010 Lead Plaintiff Deadline

BALTIMORE, MD--(Marketwire - November 14, 2009) - Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of VeraSun Energy Corp. ("VeraSun" or the "Company") (PINKSHEETS: VSUNQ) during the period between March 12, 2008 and September 16, 2008, inclusive (the "Class Period"). VeraSun is not named in this action as a defendant because it filed for bankruptcy protection on October 31, 2008.

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than January 11, 2010 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff. You may contact Brower Piven (through hoffman@browerpiven.com or 410/986-0036) to answer any questions you may have in that regard.

The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period that VeraSun was, in part, a speculative commodities trader in addition to an ethanol producer and engaged in speculative and risky derivate transactions that exposed the Company to substantial financial and liquidity risk resulting in VeraSun experiencing substantial loses on speculative derivative transactions causing margin pressures on the Company. The Complaint further alleges that as a result of margin pressures from bad speculative derivative transactions, the Company sold out of a large short position in corn and incurred substantial losses and entered into highly risky "accumulator" contracts that obligated VeraSun to purchase increasing amounts of corn after the price of corn fell in price per bushel such that its liquidity were negatively impacted, ultimately causing the Company to file for bankruptcy. According to the complaint, on September 16, 2008, VeraSun announced that it commenced a public offering of 20 million shares of its common stock to raise money for "general corporate purposes" when the true purpose of this public offering was to raise capital in an effort to prevent a disastrous impact from the huge losses experienced by the Company as a result of its speculative trading and risky bets on the price of corn. The Complaint also alleges that in response to the Company's announcement on September 16, 2008, the value of VeraSun's stock declined significantly.

If you have suffered a net loss for all transactions in VeraSun Energy Corp. common stock during the Class Period, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410-986-0036, or at Brower Piven, A Professional Corporation, The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 40 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Baltimore, Maryland
    410/986-0036
    Email Contact