Legal
Court Won’t Toss AutoChina Manipulation Case
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AutoChina International (AUTCF) asked a Massachusetts federal court to toss out a complaint brought by the SEC in April 2012 alleging that the company used $60 million in cash to trade up its stock and create the appearance of liquidity, but the court rejected AutoChina’s venue arguments. The suit was filed in Boston’s U.S. District Court. China-based auto leasing and service provider AutoChina obtained $70 million in PIPE financing in March of 2010 according to PlacementTracker data. Rodman & Renshaw and co-agent Chardan Capital Markets placed the deal, which included investors Stratus Capital Management, Millennium Management and GCA Strategic Fund Ltd. Law firm Loeb & Loeb represented the issuer.