Abraham, Fruchter & Twersky, LLP Announces Filing of Securities Class Action Lawsuit Against Longwei Petroleum Investment Holding Limited
NEW YORK--(BUSINESS WIRE)-- Abraham, Fruchter & Twersky, LLP announces that a securities class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of all persons or entities that purchased the common stock of Longwei Petroleum Investment Holding Limited ("Longwei" or the "Company") (NYS: LPH) from May 17, 2010 through January 3, 2013, inclusive (the "Class Period"), alleging violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder against the Company and certain of its officers and directors (the "Complaint").
Longwei, based in Shanxi, China, is engaged in the wholesale distribution of finished petroleum products in the People's Republic of China. The Complaint asserts allegations from a January 3, 2013 article published by investment research firm GeoInvesting titled "Longwei Petroleum: The Most Brazen China-Based U.S. Listed RTO To Date." According to the article, Longwei exaggerated its November 2012 sales figures for its fuel depot storage facilities in Taiyuan and Gujiao, China, and failed to disclose a $32 million related-party investment in a tourism business made by Longwei's subsidiary, Shanxi Zhonghe Energy Conversion Co., Ltd. The article also alleges a connection between Longwei and Puda Coal, Inc., another China-based company in which two of its officers and directors were charged with securities fraud by the United States Securities and Exchange commission.
On this news, the price per share of Longwei common stock fell $1.68, or 73%, to close that day at $0.62, on heavy trading volume. Since the announcement, trading in Longwei common stock has been halted.
If you purchased Longwei common stock from May 17, 2010 through January 3, 2013, inclusive, and you wish to serve as lead plaintiff in this action, you must move the Court no later than March 5, 2013. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.
If you would like to discuss this action or if you have any questions concerning this notice or your rights as a potential class member or lead plaintiff, you may contact: Jack G. Fruchter or Arthur J. Chen of Abraham, Fruchter & Twersky, LLP toll free at (800) 440-8986, or via e-mail at, respectively, firstname.lastname@example.org or email@example.com. You may also visit the firm's website at http://www.aftlaw.com.
Abraham, Fruchter & Twersky, LLP has extensive experience in securities class action cases, and the firm has been ranked among the leading class action law firms in terms of recoveries achieved by a survey of class action law firms conducted by Institutional Shareholder Services.
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Abraham, Fruchter & Twersky, LLP
Jack G. Fruchter / Arthur J. Chen
KEYWORDS: United States North America New York
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