Rigrodsky & Long, P.A. Files Securities Fraud Class Action Lawsuit Against Puda Coal, Inc. - PUDA
The law firm of Rigrodsky & Long, P.A. announces that it has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased the common stock of Puda Coal, Inc. (“Puda” or the “Company”) (NYSE Amex: PUDA) between November 13, 2009 and April 11, 2011, inclusive (the “Class Period”), seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”) (the “Complaint”) The case is styled as Alan Ginsberg v. Puda Coal, Inc., C.A. No. 1:11-CV-02671 (S.D.N.Y.).
Click here to learn more and view a copy of the Complaint: http://www.rigrodskylong.com/news/PudaCoalInc-PUDA.
The Complaint names Puda and certain of the Company’s current executive officers and directors as defendants. Puda through its indirect equity ownership in Shanxi Puda Coal Group Co., Ltd. (“Shangxi Coal”), supplies metallurgical coking coal to the industrial sector in the People’s Republic of China.
The Complaint alleges that the Company and certain of its officers and directors issued materially false and misleading information in its filings with the United States Securities and Exchange Commission (“SEC”) concerning the Company’s financial condition and internal controls.On April 8, 2011, a report, entitled “Puda Coal Chairman Sells Half the Company; Pledges the Other Half to Chinese PE Investors,” by Alfred Little was initially posted on Business Insider (the “Report”). As alleged in the Complaint, that report detailed the September 9, 2009, transfer of the Company’s indirect 90% interest in Shanxi Coal to defendant Ming Zhao without apprising the Company’s shareholders, or conducting a shareholder vote. The Report further detailed the subsequent transactions with China International Trust and Investment Company (“CITIC”) which caused the Company to incur massive debt and a greatly diminished equity interest – from 90% to 51% - in Shanxi Coal. The price of Puda common stock fell more than 34%, from a close of $9.10 per share on April 7, 2011, the day before the issuance of the Report, to a close $6.00 per share on extremely heavy trading volume on April 8, 2011, the day the Report was issued.
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