A class action lawsuit has been filed against former executives of trucking company Asche Transportation, claiming that they and their accounting firm misled investors as to the true nature of Asche’s financial situation, thereby artificially inflating the company’s stock price.
Former executives Larry L. Asche, Diane L. Asche, Leon M. Manachos and Ernst & Young LLP are being accused of violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The lawsuit claims that these defendants’ issued a series of materially false and misleading press releases and filings with the U.S. Securities and Exchange Commission.
Asche Transportation, which filed for Chapter 7 bankruptcy protection last December, has not been charged in the lawsuit.
A long-haul refrigerated carrier operating over 500 tractors, Asche weathered a rough year in 2000. In March of last year, former chairman and CEO Larry Asche and wife Diane Asche – his secretary and a company vp – were fired after allegedly misappropriating $1 million from the company. Then in April, the NASDAQ halted the trading of Asche stock.