The Rosen Law Firm today announced that a class action lawsuit has been filed on behalf of purchasers of China Natural Gas, Inc. (NASDAQ: CHNG) common stock during the period from March 10, 2010 through August 19, 2010.
To join the class action against China Natural Gas, go to the website at http://www.rosenlegal.com or call Laurence Rosen, Esq. or Phillip Kim, Esq. toll-free at 866-767-3653. You may also email firstname.lastname@example.org or email@example.com for information on the class action.
The complaint asserts claims against China Natural Gas and its officers and directors for violations of the federal securities laws. The complaint alleges that China Natural Gas concealed the existence of a $17.7 million loan liability on its balance sheet, understated restricted cash by $17.7 million, improperly accounted for $45.6 million in senior notes as short term liabilities, rather than long term, and failed to disclose that it is in default under the senior note indenture.
As a result of defendants' false statements about China Natural Gas’ financial condition, its stock traded at inflated prices - as high as $10.78 per share - during the Class Period. On August 13, 2010, the Company disclosed the existence of the $17.7 million loan liability, the default under the indenture and that it would restate its financial statements to properly account for these matters. On August 20, 2010, the Company filed its restated financial statements. As a result, China Natural Gas’ stock price dropped substantially, causing stockholders to suffer losses in their investments.NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER. If you wish to join the class action or to discuss your ability to recover your investment losses, please contact Laurence Rosen, Esq. or Phillip Kim, Esq. of The Rosen Law Firm toll-free at 866-767-3653 or via e-mail at firstname.lastname@example.org or email@example.com. The Rosen Law Firm has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud. The Rosen Law Firm represents investors throughout the nation, concentrating its practice in securities class actions.