Pomerantz Law Firm Reminds Shareholders of Puda Coal, Inc. of Upcoming Deadline -- PUDA
14 May 2011 - 8:28AM
Shareholders of Puda Coal, Inc. ("Puda" or the "Company")
(AMEX:PUDA) are reminded of the securities class action lawsuit
filed against Puda and certain of its officers. The class action
(No. 11 Civ. 2609) pending in the United States District Court for
the Southern District of New York is on behalf of a class of
purchasers of PUDA securities between November 13, 2009 and April
11, 2011 (the "Class Period"). The Complaint alleges violations of
Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and
Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased PUDA securities during
the Class Period and would like to serve as lead plaintiff for the
class, you have until June 13, 2011 to ask the Court to appoint
you. A copy of the complaint can be obtained at
www.pomerantzlaw.com. To discuss this action, contact Rachelle R.
Boyle at rrboyle@pomlaw.com or 888.476.6529 toll free. Those who
inquire by e-mail are encouraged to include their mailing address
and telephone number.
Puda, through its sole operating subsidiary Shanxi Puda Coal
Group Co., Ltd. ("SPCG"), supplies metallurgical coking coal to the
industrial sector in the People's Republic of China. The Complaint
alleges that throughout the Class Period, Defendants misrepresented
and/or failed to disclose, among other things: (1) that the
Company's Chairman, Ming Zhao ("Zhao"), had transferred
ownership/shares of SPCG to himself through a series of
transactions; (2) that Zhao had sold 49% of SPCG; (3) that, as a
result, Puda did not possess the ownership interests in SPCG that
the Company claimed to possess; (4) that the Company lacked
adequate internal and financial controls; and (5) that, as a result
of the foregoing, the Company's statements were materially false
and misleading at all relevant times.
On March 16, 2011, an investor website published a research
report alleging that through a series of transactions beginning in
September 2009, Zhao improperly transferred SPCG to himself; in
July 2010 sold 49% of the interest in SPCG for RMB245 million
($37.1 million), and later pledged the remaining 51% interest in
the SPCG as collateral for a three year loan for RMB 2.5 billion
($379 million).
On April 8, 2011, a report on an investment website alleged that
Puda failed to disclose certain Company transfers and questionable
trading by Zhao. On April 11, 2011, the Company's Audit Committee
announced that "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."
As a result of this news, the Company's shares declined $3.10
per share, or 34%, to close on April 8, 2011, at $6.00 per share,
on unusually heavy trading volume. Trading of the Company's shares
was subsequently halted.
The Pomerantz Firm, with offices in New York, Chicago and
Washington, D.C., 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.
CONTACT: Rachelle R. Boyle
Pomerantz Haudek Grossman & Gross LLP
888-476-6529 (ext. 237)
rrboyle@pomlaw.com
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