Rigrodsky & Long, P.A. Announces Class Action Lawsuit Against China North East Petroleum Holdings Limited

Rigrodsky & Long, P.A. announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased, including purchasers of common stock, call options, and/or sellers of put options of China North East Petroleum Holdings Limited (“China North East” or the “Company”) (AMEX: NEP) between August 14, 2009 and May 26, 2010, inclusive (the “Class Period), seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Complaint”). ( http://www.rigrodskylong.com/news/ChinaNorthEastPetroleumHoldings-NEP).

The Complaint names China North East and certain of the Company’s executive officers and directors. The Complaint alleges that during the Class Period, defendants made false and/or misleading statements and/or failed to disclose the truth concerning the Company’s financial statements. On March 8, 2010, China North East disclosed that the Company had determined that its financial statements for the year ended December 31, 2008, and each interim quarter within that year, and for the quarters ended March 31, 2009, June 30, 2009 and September 30, 2009 should no longer be relied upon and should be restated as a result of certain non-cash errors contained therein regarding the accounting for: (i) warrants issued in conjunction with a secured debenture on February 28, 2008, which warrants should have been classified according to Emerging Issues Task Force 00-19 as liability instruments rather than equity instruments; (ii) the change in the fair value of those warrants from the date of issuance through the end of the reporting period; (iii) effective interest expense arising from amortization of the discount to the carrying value of the secured debenture; (iv) the recording of warrants issued to investment consultants in connection with the secured debenture as deferred financing costs instead of consulting fees; (v) the amount of amortization of deferred financing costs associated with the issuance of that secured debenture; (vi) amounts payable to a consultant included in accrued liabilities; (vii) compensation issued to employees in the form of stock; (viii) depreciation, depletion and amortization of oil producing properties; (ix) ceiling test reduction of the net carrying value of oil producing properties; (x) income tax expense for the above items; and (xi) minority interests for certain of the above items.