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.
