NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in China Auto Logistics, Inc. (“China Auto” or the “Company”) (NASDAQ:CALI) of the August 6, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in China Auto stock or options between March 28, 2017 and April 13, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/CALI. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
The lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of all those who purchased China Auto securities between March 28, 2017 and April 13, 2018 (the “Class Period”). The case, Vanderhoef v. China Auto Logistics Inc., et al., No. 18-cv-10174 was filed on June 6, 2018.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) China Auto failed to maintain adequate internal controls over identifying and reporting certain relationships and related transactions; and (2) as a result, defendants' public statements were materially false and misleading at all relevant times.
Specifically, on April 2, 2018, China Auto stated that it was unable to file its Annual Report on Form 10-K for the period ended December 31, 2017 in a timely manner because it required additional time to “identify certain related party transactions and the impact of such transactions.” The Company also announced that it had identified a material weakness in its internal controls related to “identifying and reporting certain relationships and related transactions.”
After the announcement, China Auto’s share price fell from $3.45 per share on March 29, 2018 to a closing price of $2.79 on April 2, 2018—a $0.66 or a 19% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding China Auto’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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