Berger & Montague, P.C. Files Securities Class Action Lawsuit Against GrowLife, Inc.

PHILADELPHIA, May 30, 2014

Investors who purchased GrowLife common stock during the Class Period may move the Court to appoint them as lead plaintiff, no later than June 17, 2014.A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Investors in GrowLife who wish to discuss this action or the lead plaintiff selection process may contact Berger & Montague, P.C., toll free at 1-888-891-2289, or by e-mail at elechtzin@bm.net. A copy of the class action complaint can be viewed on Berger & Montague, P.C.'s website at www.bergermontague.com or may be requested from the Court. The case is Wolf v. GrowLife, Inc., No. 2:14-cv-04112.

Background on the GrowLife Securities Class Action

GrowLife develops, markets and deploys products and services addressing the needs of legal cannabis growing and retail operations, including hydroponic growing equipment and retail support software.

The Complaint alleges that, throughout the Class Period, defendants made false and misleading statements and/or failed to disclose that: (1) defendants had valued GrowLife shares issued to company insiders at far below then-current market prices, and concealed and underreported the actual value of such payments; (2) defendants had provided inaccurate and/or inadequate information in GrowLife's filings with the U.S. Securities and Exchange Commission (the "SEC") about the stock-based compensation it paid to its current and former officers and directors; (3) defendants' improper valuations of stock-based compensation to insiders caused GrowLife's publicly reported financials to be materially misstated and in violation of Generally Accepted Accounting Principles; (4) defendants had engaged in manipulative transactions involving GrowLife common stock, including substantial insider stock sales immediately before the SEC suspending trading in the company's securities.      

On April 10, 2014, the SEC temporarily halted trading of GrowLife securities, stating that "[t]he Commission temporarily suspended trading in the securities of PHOT because of questions that have been raised about the accuracy and adequacy of information in the marketplace and potentially manipulative transactions in PHOT's common stock."

When trading of the Company's stock resumed on April 25, 2014, the price of GrowLife shares dropped $0.29 per share, or 58% from a previous closing price of $0.50 on April 9, 2014, to close at $0.21 per share on April 25, 2014, on extremely high trading volume.