Ryan & Maniskas, LLP ( www.rmclasslaw.com/cases/cvvt) 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 investors who purchased China Valves Technology, Inc. ("China Valves" or the "Company") (NASDAQ: CVVT) common stock between January 12, 2010 and January 13, 2011, inclusive (the "Class Period").
For more information regarding this class action suit, please contact Ryan & Maniskas, LLP (Richard A. Maniskas, Esquire) toll-free at (877) 316-3218 or by email at firstname.lastname@example.org or visit: www.rmclasslaw.com/cases/cvvt.
The Complaint alleges violations of the Securities Exchange Act against China Valves and its officers and directors for misrepresenting the nature, circumstances, and related party nature of the Company’s acquisitions of Changsha Valve Co. and Shanghai Pudong Hanwei Valve Co., Ltd. During the Class Period, the defendants failed to disclose that both acquisitions involved payments to entities or persons that were related to management in violation of GAAP. As a result of this, the Company’s financial results were materially overstated.
On January 13, 2011, Citron Research published an online report that China Valves may be delisted from NASDAQ as it faces increased regulatory scrutiny over certain buyouts. Specifically, Citron Research stated that he financial results of Changsha Valve, an acquisition China Valves had made in 2010, have been overstated and that the acquisition was an improper related party transaction. On this news, shares of China Valves fell 18.0 percent to close at $7.15 per share on unusually heavy trading volume. By January 14, 2011, shares of China Valves had fallen to 6.87 per share.If you are a member of the class, you may, no later than April 5, 2011, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.
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