Milberg LLP announced that on April 21st 2011, the firm filed a class action lawsuit on behalf of investors who purchased the securities of Puda Coal, Inc during the period November 13th 2009 to April 11th 2011, inclusive.
The case, Burquist v. Puda Coal Inc No CV11-03412, is pending in the United States District Court for the Central District of California and alleges violations of the Securities Exchange Act of 1934 by Puda and certain of the Company's officers.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements to investors by failing to disclose that the company's chairman, Mr Ming Zhao had transferred ownership of Puda's operating entity, Shanxi Puda Coal Group Co Ltd to himself, thereby rendering Puda an empty shell company.
On April 8th 2011, Alfred Little an investor who researches and blogs about Chinese companies, exposed the transfer of Shanxi Coal to Ming Zhao. In reaction to this news, shares of Puda's stock fell USD 3.10 per share, or over 34% to close at USD 6.00 per share, on extremely heavy trading volume. On the next trading day, April 11th 2011, the Company issued a press release stating that “Though the investigation is in its preliminary stages, evidence supports the allegation that there were transfers by Mr. Zhao in subsidiary ownership that were inconsistent with disclosure made by the Company in its public securities filings. Mr. Zhao has agreed to a voluntarily leave of absence as Chairman of the Board of the Company until the investigation is complete." In response to this announcement, the NYSE halted trading in the Company's stock on April 11th 2011.
If you purchased securities of Puda from November 13th 2009, to April 11th 2011, you may move the court no later than June 13th2011 and request that the Court appoint you as lead plaintiff. (sourced steelguru)
The case, Burquist v. Puda Coal Inc No CV11-03412, is pending in the United States District Court for the Central District of California and alleges violations of the Securities Exchange Act of 1934 by Puda and certain of the Company's officers.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements to investors by failing to disclose that the company's chairman, Mr Ming Zhao had transferred ownership of Puda's operating entity, Shanxi Puda Coal Group Co Ltd to himself, thereby rendering Puda an empty shell company.
On April 8th 2011, Alfred Little an investor who researches and blogs about Chinese companies, exposed the transfer of Shanxi Coal to Ming Zhao. In reaction to this news, shares of Puda's stock fell USD 3.10 per share, or over 34% to close at USD 6.00 per share, on extremely heavy trading volume. On the next trading day, April 11th 2011, the Company issued a press release stating that “Though the investigation is in its preliminary stages, evidence supports the allegation that there were transfers by Mr. Zhao in subsidiary ownership that were inconsistent with disclosure made by the Company in its public securities filings. Mr. Zhao has agreed to a voluntarily leave of absence as Chairman of the Board of the Company until the investigation is complete." In response to this announcement, the NYSE halted trading in the Company's stock on April 11th 2011.
If you purchased securities of Puda from November 13th 2009, to April 11th 2011, you may move the court no later than June 13th2011 and request that the Court appoint you as lead plaintiff. (sourced steelguru)
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