Solar Power Breakthrough Fraud

Re: the news item about the supposed solar power breakthrough, a Google of the company name (International Automated Systems Inc.) turned up the following from a Stanford Law School class action info site: (http://securities.stanford.edu/1009/IntlAutomated96/)
Conclusion: According to the firm’s 10-K dated 10/13/1999, on July 2, 1996, the Company had a class action lawsuit filed against it by shareholders. The class action was brought on behalf of all persons and entities who purchased shares of common stock from May 13, 1996 to June 27, 1996. In April 1999, the lawsuit was settled with the Company agreeing to pay $170,631 for shareholder losses and associated legal fees. The $170,631 liability has been accrued in the accompanying financial statements as of June 30, 1999.

According to a Press Release dated 7/8/96, the complaint charges IAS and its President, Neldon Johnson, with violations of the federal securities laws. Plaintiff specifically alleges that defendants artificially inflated the price of IAS common stock by issuing false and misleading statements regarding the company’s introduction of a purportedly new and revolutionary communications technology called Digital Wave Modulation.