Yesterday, word broke that Terra Tech Corporation (OTCQX:TRTC) is at the center of a lawsuit, regarding alleged fraud. On the news, TRTC stock plunged 23% at one point in the afternoon. Earlier in the day, it dropped more than 30%.
The cannabis market was not happy, but neither was the Irvine, California-based company. Twenty-four hours later, the company came out with a statement, denying all allegations. The market seems to believe TRTC, sending the stock up nearly 20%.
Terra Tech Corp Denies Fraud Allegations
Looting successful dispensary options, as well as improper auditing, and providing false statements in its 10-Q filing are a few of the claims in the complaint (there were 50 in total) against the agriculture company. Heidi Loeb Hegerich issued the suit. But no one is going to push Terra Tech Corp around.
On Wednesday, December 19th, TRTC said it plans to defend itself against all claims, denying the allegations. The company also highlighted the fact that these allegations come solely from Heidi Loeb Hegerich. Terra Tech has now turned the tables on her. According to the company, this lawsuit is merely an attempt to get the company to pay money she believes they owe her. Terra says they do not owe her the money she thinks they do.
"We reaffirm our commitment to our shareholders," said Terra Tech in its Wednesday issued statement, saying it will continue to "correct any misleading and inaccurate reports." It also promised to remain committed to providing investors with "accurate information."
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Who Should We Believe?
Considering there is no proof right now, it's unclear who investors should believe. It's a game of 'he said, she said.' However, the market seems to have gotten a second wind of trust in Terra Tech Corporation.
TRTC Stock Price
According to Yahoo Finance, as of 1:08 PM, the TRTC stock is trading at $0.65, which puts the stock up 16.28%.
Featured Image: Depositphotos/violetkaipa
