SAN DIEGO--(BUSINESS WIRE)--Zeldes & Haeggquist, LLP, a shareholder and consumer rights litigation firm, has commenced an investigation into possible violations of the federal securities laws by certain officers and directors at Longwei Petroleum Investment Holding, Ltd. (NYSE MKT: LPH) (“Longwei” or the “Company”).
If you purchased shares of Longwei stock between May 17, 2010 and January 3, 2013, and would like additional information regarding this investigation, or if you have information regarding the matters under investigation, please contact attorney Amber Eck at 619-342-8000 or by email at ambere@zhlaw.com.
Longwei, based in Shanxi, China, is an energy company which transports, stores, and sells finished petroleum products in the People’s Republic of China (“PRC”).
Zeldes & Haeggquist’s investigation concerns allegations from a January 3, 2013 report published by the investment research firm GeoInvesting titled “Longwei Petroleum: The Most Brazen China-Based U.S. Listed RTO To Date.” According to the article, Longwei inflated 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 Petroleum’s subsidiary, Shanxi Zhonghe Energy Conversion Co., Ltd. The article also alleges a connection between Longwei and Puda Coal, Inc. (another China-based company) which had two of its officers and directors charged with securities fraud by the SEC.
Specifically, the investigation focuses on whether Longwei and its officers and directors misrepresented or failed to disclose: (1) a material related-party investment in a tourism business involving Longwei’s Chief Executive Officer (“CEO”); (2) that Longwei’s CEO was a minority owner of Longwei’s subsidiaries; and (3) that Longwei’s wholesale fuel sales were greatly exaggerated.
On this news, Longwei’s stock fell 73%, or $1.68, to close on January 3, 2013 at $0.62 on heavy trading volume. Since the announcement, trading in Logwei common stock has been halted.
Zeldes & Haeggquist is a full-service law firm which brings major class actions nationwide on behalf of defrauded investors and consumers and handles a variety of complex business litigation matters. Please contact Amber Eck at (619) 342-8000 or by email at ambere@zhlaw.com for more information, or visit our website at www.zhlaw.com.