NEW YORK, Aug. 22, 2014 /PRNewswire/ -- Pomerantz LLP has
filed a class action lawsuit against China XD Plastics Company
Ltd. ("China XD" or the "Company")(NASDAQ: CXDC) and certain
of its officers. The class action, filed in United States
District Court, Southern District of New
York, and docketed under 14-cv-5359, is on behalf of a class
consisting of all persons or entities who purchased China XD
securities between August 12, 2009
and July 10, 2014, inclusive (the
"Class Period"). This class action seeks to recover damages
against Defendants for alleged violations of the federal securities
laws under the Securities Exchange Act of 1934 (the "Exchange
Act").
If you are a shareholder who purchased China XD securities
during the Class Period, you have until September 15, 2014 to ask the Court to appoint
you as Lead Plaintiff for the class. A copy of the Complaint
can be obtained at www.pomerantzlaw.com. To discuss this
action, contact Robert S. Willoughby
at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll
free, x237. Those who inquire by e-mail are encouraged to include
their mailing address, telephone number, and number of shares
purchased.
China XD is a specialty chemical company that is engaged in the
research, development, manufacture, and sale of modified and
engineering plastics products primarily for use in the fabrication
of automobile parts and components in the PRC. Its modified
plastics are used to fabricate various auto components, including
exteriors consisting of automobile bumpers, rearview and side view
mirrors, and license plate parts; interiors, such as door panels,
dashboards, steering wheels, glove compartments, and safety belt
components; and functional components comprising air conditioner
casings, heating and ventilation casings, engine covers, and air
ducts. The Company also offers specially engineered plastics
and environment-friendly plastics for use in oilfield equipment,
mining equipment, vessel propulsion systems, and power station
equipment.
The Complaint alleges that throughout the Class Period,
Defendants made false and/or misleading statements, and failed to
disclose material adverse facts about the Company's business,
operations, prospects and performance. Specifically, during
the Class Period, Defendants made false and/or misleading
statements and/or failed to disclose that: (i) China XD
reports gross margins substantially higher than its main
competitor, yet spends much less on research and development
("R&D"); (ii) China XD reported substantially higher revenues
and net income in its SEC filings compared to filings made to the
Chinese state regulatory authority known as the State
Administration for Industry and Commerce ("SAIC") during the fiscal
years 2008 through 2010; and (iii) as a result of the above, the
Company's financial statements were materially false and misleading
at all relevant times.
On July 10, 2014, the price of
China XD common stock fell $1.17
(15%) to close at $6.48 on heavy
trading volume after the release of an article by the research
entity Bleeker Street Research on SeekingAlpha.com, which
disclosed for the first time, among other things, that China XD
reports gross margins substantially higher than its main
competitor, yet spends much less on R&D, and China XD has
reported higher revenues and net income in SEC filings compared to
SAIC filings.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San
Diego, is acknowledged as one of the premier firms in the
areas of corporate, securities, and antitrust class litigation.
Founded by the late Abraham L.
Pomerantz, known as the dean of the class action bar, the
Pomerantz Firm pioneered the field of securities class actions.
Today, more than 70 years later, the Pomerantz Firm continues in
the tradition he established, fighting for the rights of the
victims of securities fraud, breaches of fiduciary duty, and
corporate misconduct. The Firm has recovered numerous
multimillion-dollar damages awards on behalf of class members. See
www.pomerantzlaw.com.
CONTACT:
Robert S.
Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
SOURCE Pomerantz LLP