TMCnet News
Law Offices of Curtis V. Trinko Announces Class Action Involving China Gerui Advanced Materials Group Ltd.LAW OFFICES OF CURTIS V. TRINKO, LLP announces the filing today of a class action complaint in the United States District Court for the Southern District of New York. The lawsuit is filed on behalf of a class ("Class") consisting of purchasers of securities of China Gerui Advanced Materials Group Ltd. ("CHOP") between January 11, 2012 and September 4, 2014, inclusive ("Class Period"). The lawsuit alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as well as common law fraudulent concealment, that occurred when CHOP, its directors, and/or officers issued materially false and misleading statements regarding CHOP's business and prospects. Specifically, on September 4, 2014, CHOP disclosed that, before June 30, 2014, it had purportedly spent $234 million of its unresticted cash to acquire a collection of antique Chinese porcelain that it valued at $905 million. However, CHOP provided no details regarding the collection's source, where the collection was being stored, whether it is insured, and who appraised and authenticated it. Before this unexpected purchase, CHOP had emphasized its fiscal discipline, and had characterized its growth strategy as involving expanding its product lines, expanding overseas, and combining with competitors. CHOP had also previously touted its significant cash reserves, reporting holdings of $230.7 million of unrestricted cash as of March 31, 2014. By contrast, on September 4, 2014, CHOP disclosed that as of June 30, 2014, it had a mere $3 million in unrestricted cash. Upon the announcement of this alleged acquisition, shares of CHOP declined from $0.61 per share on September 3, 2014 to a September 4, 2014 closing price of $0.49 per share, representing a decline of approximately 20%. If you are a member of the Class described above, you may move the Court, no later than January 26, 2015, to serve as Lead Plaintiff. A Lead Plaintiff is a representative chosen by the Court, who acts on behalf of other Class members in directing the litigation. You do not need to be a Lead Plaintiff to be included in the Class. If you purchased CHOP securities and wish to discuss this litigation, any questions concerning this Notice, or your rights or interests with respect to these matters, please contact us.
|
