Bernstein Liebhard LLP today announced that a lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of a class (the “Class”) of investors who purchased Longtop Financial Technologies Ltd. (“Longtop” or the “Company”) (NYSE: LFT) securities, including ADS’s, between the period of October 25, 2007 and May 16, 2011 (the “Class Period”).
Plaintiffs allege that, during the Class Period, Longtop and its senior executives reported increasing revenues and profits, and that the Company's financial statements were reported in accordance with U.S. generally accepted accounting principles (“GAAP”). However, unknown to investors, the Company made materially false and misleading statements to investors by misrepresenting and failing to disclose that: 1) Defendants falsified certain financial records in relation to cash at bank, loan balances, and sales revenue; 2) the Company's management interfered with the audit process and improperly detained audit files of the Company's auditor, Deloitte Touche Tohmatsu CPA Ltd. (“Deloitte”); 3) Defendants improperly understated the Company's expenses, thereby artificially inflating margins; 4) Longtop's financial statements were not presented in accordance with GAAP; and 5) Defendants had no reasonable basis for their positive statements about Longtop's business and financial results.
Plaintiffs further allege that starting on April 26, 2011, through a series of partial disclosures, the truth about Longtop's true financial condition was revealed and, as a result, Longtop's ADSs declined from a closing price of $25.54 per share on April 25, 2011, to close at $18.93 per share, the day before trading in the ADSs was halted by the New York Stock Exchange, a decline of $6.61 per share or approximately 26%.
Plaintiffs seek to recover damages on behalf of all Class members who purchased or otherwise acquired securities of Longtop during the Class Period. If you purchased or otherwise acquired Longtop shares during the Class Period, and either lost money on the transaction or still hold the shares, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than July 22, 2011.