SOURCE: Kantrowitz Goldhamer & Graifman

October 28, 2009 14:13 ET

Notice of Class Action Filed Against SpongeTech Delivery Systems, Inc. by Kantrowitz, Goldhamer & Graifman, P.C.

CHESTNUT RIDGE, NY--(Marketwire - October 28, 2009) - Notice is hereby given that a lawsuit has been filed in the U.S. District Court for the Southern District of New York on October 28, 2009 by the law firm of Kantrowitz, Goldhamer & Graifman, P.C. on behalf of a plaintiff and a proposed class of purchasers of securities of SpongeTech Delivery Systems, Inc. (OTCBB: SPNGE) ("SpongeTech" or "Company") during the period April 15, 2008 and October 5, 2009, inclusive (the "Class Period"). The complaint alleges that SpongeTech and certain officers and directors violated Sections 10(b), 14(a) and 20(a) of the Securities Exchange Act of 1934 by making false and misleading statements and omissions concerning SpongeTech's financial statements. It also alleges that the Company engaged in financial transactions with related entities owned or controlled by officers and/or directors of the Company and that said officers and/or directors of the Company engaged in manipulation of the Company's stock. The Company has been notified by the SEC that it is the subject of a formal investigation. In addition the SEC has temporarily suspended trading in the Company's stock.

Plaintiff seeks to recover damages on his own behalf and on behalf of the Class and is represented by the law firm of Kantrowitz, Goldhamer & Graifman, P.C. The firm has significant experience successfully prosecuting complex securities fraud class actions on behalf of defrauded investors.

If you engaged in transactions of SpongeTech securities during the Class Period, you may, not later than sixty (60) days from October 9, 2009, move the court to serve as lead plaintiff if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. You can see more information concerning this lawsuit on Kantrowitz, Goldhamer & Graifman's website:

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to this matter, please contact: Gary S. Graifman at Kantrowitz, Goldhamer & Graifman, P.C. toll-free at 800-660-7843 or via e-mail at or by writing, Kantrowitz, Goldhamer & Graifman, 747 Chestnut Ridge Road, Chestnut Ridge, New York 10977.

Contact Information

    Kantrowitz, Goldhamer & Graifman, P.C.
    Gary S. Graifman, Esq.
    1-800-660-7843 or 845/356-2570