Technology developer company, Uni-Pixel Inc. will have to pay $750,000 to settle fraud lawsuit case. The company faces charges of accounting fraud in a court complaint on Wednesday.
The Yahoo News reported, Uni-Pixel Inc. will pay the said settlement money to investors who filed an accounting fraud lawsuit against the company. The lawsuits stated, Uni-Pixel "misled investors about the production status and sales agreements for a key product", according to the U.S. securities regulators on Wednesday.
Two former Uni-Pixel executives faces fraud charge filed by the U.S. Securities and Exchange Commission. The civil complaint filed in a federal court in Houston stated, the former high ranking officials of the company had been misleading their investors about its manufacturing and business prospects from 2012 to 2014.
The Securities and Exchange Commission also said, the defendants, former Uni-Pixel Chief Executive Reed Killion and former Chief Financial Officer Jeffrey Tomz issued misleading statements. SEC's Fort Worth-base Director, Shamoil T. Shipchandler said, "We allege that Uni-Pixel and top executives portrayed a company whose technology had arrived when in truth it was still in the developmental stage," Street Insider quoted.
SEC complaint also stated that the company announced in a press released on November 2013, touting a purchasing orders for its sensors products. SEC added, "The company concealed that the order was for a mere $10 worth of sensors for the customer to review as samples."
However, Uni-Pixel denied did release a statement that they denied or admit the said charges, according to Reuters. SEC entered a prosecution agreement with former board chairman Bernard Marren. The agreement requires him to cooperate with the SEC's continuing case while complying with certain undertakings in order to avoid civil charges against him.
Uni-Pixel is based in Santa Clara, California. The company has innovative technologies that produced narrow-bezel touchscreen devices that are thinner, lighter, more durable, and less expensive.
