The run-up happened one hour before the market closed, caused by a pres release of the company. On the trading activity that had not been seen since the beginning of 2008 the value for the share turnover hit 8.79 million shares traded and the stock closed the market at $0.037 for a share. Such a percentage jump is not unusual for the penny stock market, but also a common thing is that it is usually followed by some promotional disclosures and massive sell-offs.
The announcement that made VYEY stock surge concerned a lawsuit in which the company was one of the plaintiffs, saying that the Superior Court of the State of Texas made the final judgment in favor of the plaintiffs and awarded them compensatory damages in the amount of $5.6 million jointly. Additional damages should be paid by the defendants in the total amount of $11.2 million and the Court also stated that the defendants have committed a fraud in violation of the Texas Oil and Gas Proceeds Payment Act and have breached their contracts with the plaintiffs.
More details have not been given and Victory Energy is not disclosing any financial information since November 2008 when it filed its latest 10-Q. In general, the communication with investors seems absolutely scarce and the company is not even sharing corporate updates through press releases. It is only known that this summer certain changes in the Board of Directors of Victory Energy took place and the previous 8-k also reveals that VYEY has had a partnership with some of the defendants in the trial to acquire and operate oil, gas and other mineral properties.
The changes in the management body, especially the new CEO, might help the company finally do some real business, but some traders still remember the former Victory Energy CEO Jon Fullenkamp, who has also been a client of the investigatory authorities, suspected for conducting stock pumps and dumps.
