Brower Piven Encourages Investors Who Have Losses in Excess of $200,000 From Investment in VeraSun Energy Corp. to

Sat Nov 14, 2009 9:13am EST
 
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  BALTIMORE, MD, Nov 14 (MARKET WIRE) -- 
Brower Piven, A Professional Corporation announces that a class action
lawsuit has been commenced in the United States District Court for the
Southern District of New York on behalf of purchasers of the common stock
of VeraSun Energy Corp. ("VeraSun" or the "Company") (PINKSHEETS: VSUNQ)
during the period between March 12, 2008 and September 16, 2008,
inclusive (the "Class Period"). VeraSun is not named in this action as a
defendant because it filed for bankruptcy protection on October 31, 2008.

    No class has yet been certified in the above action. Members of the Class
will be represented by the lead plaintiff and counsel chosen by the lead
plaintiff. If you wish to choose counsel to represent you and the Class,
you must apply to be appointed lead plaintiff no later than January 11,
2010 and be selected by the Court. The lead plaintiff will direct the
litigation and participate in important decisions including whether to
accept a settlement and how much of a settlement to accept for the Class
in the action. The lead plaintiff will be selected from among applicants
claiming the largest loss from investment in the Company during the Class
Period. You are not required to have sold your shares to seek damages or
to serve as a Lead Plaintiff. You may contact Brower Piven (through
hoffman@browerpiven.com or 410/986-0036) to answer any questions you may
have in that regard.

    The complaint accuses the defendants of violations of the Securities
Exchange Act of 1934 by virtue of the Company's failure to disclose during
the Class Period that VeraSun was, in part, a speculative commodities
trader in addition to an ethanol producer and engaged in speculative and
risky derivate transactions that exposed the Company to substantial
financial and liquidity risk resulting in VeraSun experiencing substantial
loses on speculative derivative transactions causing margin pressures on
the Company. The Complaint further alleges that as a result of margin
pressures from bad speculative derivative transactions, the Company sold
out of a large short position in corn and incurred substantial losses and
entered into highly risky "accumulator" contracts that obligated VeraSun
to purchase increasing amounts of corn after the price of corn fell in
price per bushel such that its liquidity were negatively impacted,
ultimately causing the Company to file for bankruptcy. According to the
complaint, on September 16, 2008, VeraSun announced that it commenced a
public offering of 20 million shares of its common stock to raise money
for "general corporate purposes" when the true purpose of this public
offering was to raise capital in an effort to prevent a disastrous impact
from the huge losses experienced by the Company as a result of its
speculative trading and risky bets on the price of corn. The Complaint
also alleges that in response to the Company's announcement on September
16, 2008, the value of VeraSun's stock declined significantly.

    If you have suffered a net loss for all transactions in VeraSun Energy
Corp. common stock during the Class Period, you may obtain additional
information about this lawsuit and your ability to become a lead plaintiff
by contacting Brower Piven at www.browerpiven.com, by email at
hoffman@browerpiven.com, by calling 410-986-0036, or at Brower Piven, A
Professional Corporation, The World Trade Center-Baltimore, 401 East Pratt
Street, Suite 2525, Baltimore, Maryland 21202. Attorneys at Brower Piven
have combined experience litigating securities and class action cases of
over 40 years. If you choose to retain counsel, you may retain Brower
Piven without financial obligation or cost to you, or you may retain other
counsel of your choice. You need take no action at this time to be a
member of the class.

    

CONTACT:
Charles J. Piven
Brower Piven, A Professional Corporation
Baltimore, Maryland
410/986-0036
Email Contact

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