WASHINGTON--(BUSINESS WIRE)--Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether Lihua International, Inc. (“Lihua” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
A class action lawsuit was filed in the U.S. District Court for the Central District of California by another law firm on behalf of purchasers of the common stock of Lihua International, Inc. (NASDAQ: LIWA) between August 9, 2012 and April 30, 2014, inclusive (the “Class Period”).
This case followed the April 30, 2014 announcement that Lihua CEO and Chairman Zhu Jianhua may have diverted Company assets and was under investigation by Chinese law enforcement. The complaint alleges that Lihua and certain of its officers and directors (“Defendants”) misrepresented and/or failed to disclose that: (1) Lihua's business experienced a significant downturn starting from late 2012; (2) Lihua's production activities slowed down dramatically in 2013, and almost entirely ceased after January 31, 2014; (3) Lihua's warehouse was seized by a Court in the People's Republic of China; and (4) Zhu Jianhua attempted to move inventory in order to hide it from creditors, and is now being investigated by the police in China for larceny.
On April 30, 2014, Lihua published a press release:
“The Board of Directors of Lihua International, Inc. (LIWA) ("Lihua" or the "Company"), is aware of a decline in the Company's stock price and published allegations that Mr. Zhu Jianhua, the Company's CEO and Chairman of the Company's Board, may have diverted or attempted to divert Company assets and as a result may have been the subject of action by local law enforcement. Although they have not yet been able to verify this information, the Board's Audit Committee is taking steps to determine the facts and will take appropriate action. If the allegations prove true, the Company's financial statements may contain material misstatements.”
NASDAQ announced a halt to trading in Lihua on April 30, and that trading would remain halted until Lihua had fully satisfied NASDAQ's request for additional information. The stock dropped from $4.35 per to $2.08 per share on April 30 and trading in the stock remains halted.
On May 7, Lihua’s Board announced that CEO Zhu and Ms. Yaying Wang, the Company's Chief Operating Officer and a director on the Company's Board, resigned as due to personal reasons. No successors have yet been named.
Cohen Milstein encourages all investors who purchased Lihua common stock between August 9, 2012 and April 30, 2014, or former employees with information concerning this matter to contact the firm.
If you are a Lihua shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein’s Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at firstname.lastname@example.org. If you wish to serve as lead plaintiff, you must move the Court no later than June 30, 2014 to request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may retain Cohen Milstein Sellers & Toll PLLC or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.
Cohen Milstein Sellers & Toll PLLC has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Chicago, Philadelphia and Palm Beach Gardens, and is active in major litigation pending in federal and state courts throughout the nation.
The firm’s reputation for excellence has repeatedly been recognized by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen Milstein Sellers & Toll PLLC has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total over one billion dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:
Steven J. Toll, Esq.
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
West Tower, Suite 500
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email: email@example.com; firstname.lastname@example.org