Abraham, Fruchter & Twersky, LLP Announces Investigation Against Puda Coal, Inc.
Abraham, Fruchter & Twersky, LLP has commenced an investigation for possible violations of federal securities laws on behalf of purchasers of the common stock of Puda Coal, Inc. (“Puda” or the “Company”) (AMEX:PUDA) between November 13, 2009 and April 11, 2011, inclusive (the “Class Period”).
On April 8, 2011, Puda issued a press release announcing that it was currently reviewing allegations regarding improper share transactions by defendant Ming Zhao, which were published in an article entitled “Puda Coal Chairman Secretly Sold Half the Company and Pledged the Other Half to Chinese PE Investors” by a short-seller that same day. In reaction to the short-seller’s article and the Company’s press release, shares of the Company’s stock declined more than 34% on April 8, 2011, on extremely heavy trading volume.
On April 11, 2011, Puda announced that it had unanimously ratified the Audit Committee's decision to launch a full investigation into the allegations raised in the short-seller’s article alleging various unauthorized transactions in the shares of a subsidiary company, Shanxi Coal. The April 11, 2011 press release noted that, “[a]lthough the investigation is in its preliminary stages, evidence supports the allegation that there were transfers by Mr. Zhao in subsidiary ownership that were inconsistent with disclosure made by the Company in its public securities filings. Mr. Zhao has agreed to a voluntarily [sic] leave of absence as Chairman of the Board of the Company until the investigation is complete.” In response to the above announcement, trading in the Company's stock was halted on April 11, 2011. The firm is investigating whether Puda may have made materially inaccurate statements to the investing public between November 13, 2009 and April 11, 2011.
If you purchased Puda common stock between November 13, 2009 and April 11, 2011 and you wish to serve as lead plaintiff in this action, you must move the Court no later than June 13, 2011. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.
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