FT has filed a class action lawsuit in the United States District Court for the Central District of California on behalf of investors who purchased the publicly traded securities of Rentech, Inc. (AMEX: RTK) between February 8, 2008 and December 15, 2009, inclusive.

The complaint charges Rentech and certain of its officers and directors with violating the Securities Exchange Act of 1934. Rentech is a provider of “clean energy solutions” and developer of synthetic fuels and electric power from carbon-containing materials such as biomass, waste and fossil resources.

The complaint alleges that, throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s financial results and compliance with Generally Accepted Accounting Principles.

Specifically, the complaint  alleges that defendants failed to disclose: (a) certain deposit payments associated with the Company’s forward contracts for natural gas purchases were incorrectly reported on Rentech’s balance sheets as inventory rather than deposits; (b) as a result, the Company’s financial results were overstated during the Class Period; (c) the Company had failed to properly recognize deposits on its balance sheets in violation of GAAP; (d) the Company lacked adequate internal and financial controls; and (e) as a result of the above, the Company’s financial statements during the Class Period were materially false and misleading at all relevant times.On December 14, 2009 and December 15, 2009, Rentech announced that the Company had improperly reported certain deposit payments as inventory on its balance sheets in various filings with the SEC in 2008 and 2009. In response to the Company’s announcement, Rentech shares plunged to $1.27 a share on December 18, 2009, representing a 25% drop from the stock’s opening price on December 14, 2009.

If you are interested in acting as lead plaintiff, or if you have any other questions about the litigation, please contact Donald J. Enright, Esq., by email at This email address is being protected from spam bots, you need Javascript enabled to view it or via toll-free telephone at (877) 337-1050.