Dallas, Texas 12/18/2013 (FINANCIALSTRENDS) – Cereplast Inc (OTCMKTS:CERP) is an diversified chemicals manufacturer which has been making revenue by selling naturally produced resins through its two major product offerings Cereplast Compo-stables Resins and Cereplast Sustainable resins. Over the past one month the stock has been struggling to hold its share price from falling down further. In fact even during trading yesterday the stock has managed to post a 5.1 percent dip in market value in comparison to its previous day close. This followed a huge 41 percent dip in value during trading over the last week on the back of unfavorable developments in regards to it magna related legal troubles.
On December 12, Cereplast Inc (OTCMKTS:CERP) announced that its legal battle with Magna Group which traces back its origin to May 8 this year is getting into full steam now as its opponents have responded by filing truck loads of counter pleas with the Southern District Court of New York. Readers should note that Cereplast Inc (OTCMKTS:CERP) had filed suit against Magna Group LLC and Hanover Holdings LLC in the district court in May this year alleging “breach of contract, breach of the covenant of good faith and fair dealing”. The micro capped firm has sought monetary damages in lieu of the damages cost to its operations.
Following this , the respondents in this case Magna Group LLC and Hanover Holdings LLC had countered by filing a “request for relief and preliminary injunction” against the $0.19 million market capped Cereplast in August. On December 11, the company reported that the honourable “United States District Court – Southern District of New York” had denied the motion.
In spite of the law suit progressing in its favor at this early stage, the stock has been hammered at the browsers. It is currently trading at 81 percent lower than its prior 52 week high price point.