Robbins Umeda LLP has commenced an investigation into Duoyuan Global Water Inc. ("DGW" or the "Company") (NYSE: DGW) concerning possible violations of the state and federal securities laws.
DGW claims that it engages in the manufacture and sale of water treatment equipment in the People's Republic of China. According to the Company, its customers are primarily wastewater treatment plants, water works facilities, manufacturing plants, commercial businesses, residential communities, and individual customers. DGW was founded in 1992 and is headquartered in Beijing, the People's Republic of China. The Company's Chief Executive Officer, Wenhua Guo, is also Chairman of Beijing-based Duoyuan Printing, Inc. ("DYP"), a manufacturer of offset printing equipment.
Robbins Umeda's investigation concerns whether the Company has adequate internal controls. On September 13, 2010, DYP announced that it was dismissing its independent registered public accounting firm and reorganizing its top management, including its Chief Executive Officer and Chief Financial Officer, in connection with DYP's "desire to resolve open issues and file our 10-K on a timely basis." An analyst at Piper Jaffray slashed DGW's price target to $9.00 from $34.00, citing the close ties between the Company and DYP and concerns that there might be similar internal control issues at DGW. Upon this news, DGW's stock declined approximately 45% from its close price of $20.70 per share on September 10, 2010, to close at $12.10 on September 13, 2010.
If you purchased or own DGW common stock and would like more information about your rights as a shareholder and our investigation, please contact Gregory E. Del Gaizo at 800-350-6003 or by e-mail at email@example.comRobbins Umeda LLP is a California-based law firm, which has significant experience representing investors in securities fraud class actions, merger-related shareholder class actions, and shareholder derivative actions. For more information about the firm, please go to http://www.robbinsumeda.com. Advertisement