Top executives of Asche Transportation Services ares the target of a second lawsuit alleging financial shenanigans.

Christopher Cronau has filed a class action suit against Larry Asche, Diane Asche, Leon Manachos, and Ernst & Young. The "class" consists of anyone who bought Asche common stock between March 30, 1998, and April 7, 2000. Asche Trnsportation Services was not named as a defendant; the company has filed for Chapter 7 bankruptcy protection.
The suit claims that the Asches and Manachos issued a series of "materially false and misleading press releases and filings with the United States Securities and Exchange Commission." These allegedly failed to disclose the true nature of ATS's revenues and earnings, causing ATS's stock price to be artificially inflated, causing damage to stockholders when the truth came out in early 2000. The complaint also charges the accounting form of Ernst & Young with signing false and misleading audit reports filed with the SEC for 1997 and 1998.
Problems first came to light in January 2000, when the Shannon, Ill.-based company dismissed the controller at subsidiary Asche Transfer after the controller apparently misstated financial reports and allegedly stole more than $60,000. A month later, Larry Asche, chairman and CEO, and Diane Asche, vice president and secretary, were fired for allegedly embezzling $1 million. At the same time, the company announced it was implementing cost-cutting measures. In April, the company announced its annual financial statements would be delayed, which resulted in the company being delisted from Nasdaq. Just before the end of the year, Asche Transportation filed for Chapter 7 bankruptcy protection.
Cronau bought 230 shares of ATS stock on Feb. 22, 2000.
This is not the first stockholder lawsuit making these claims; Axelson v. Larry L. Asche et al was filed in April.
For more information, contact attorney Michael Goldberg in Los Angeles at (888) 773-9224 or info@glancylaw.com.