Hagens Berman is reminding investors that in order to become a lead plaintiff in a case against Puda Coal, Inc. (“Puda” or the “Company”) (AMEX:PUDA) they must move the court by June 13, 2011. Hagens Berman’s investigation includes potential claims against the investment bankers and auditors of Puda, including: Macquare Capital; Brean Murray; Carret & Co.; Newbridge Securities Corp. and Moore Stephens after two offerings of shares in the company. The first offering occurred on December 8, 2010, and the second occurred on February 12, 2010. Moore Stephens was the auditor for the December 31, 2010, as well as the 2007-2009 financial statements.
The lawsuit, filed in the United States District Court for the Southern District of New York, alleges that Puda and its investment bankers and auditors failed to disclose adverse facts about the company's business.
If you purchased shares of Puda Coal on or around December 8, 2010, and February 12, 2011, or directly from the investment banks, and you wish to move the court for lead plaintiff status, you must do so by June 13, 2011. Partner Reed R. Kathrein is leading the firm's investigation from its San Francisco office and can be reached by phone at 510-725-3000. You can also contact the Hagens Berman legal team via email at Pudacoal@hbsslaw.com. Additional information is available at www.hbsslaw.com/pudacoal.
The lawsuit alleges that Puda transferred the ownership of subsidiary Shanxi Coal without authorization or disclosure to investors and exaggerated its ownership stake in the subsidiary."Puda’s auditors and investment bankers appear to have failed to perform basic due diligence and to inform investors of crucial facts about this subsidiary and the company's stake in it,” said Mr. Kathrein. On April 8, 2011, an article entitled "Puda Coal Chairman Secretly Sold Half the Company and Pledged the Other Half to Chinese PE Investors" was published. Following a response from Puda announcing that it was reviewing the allegations in the article, the stock price for the company fell 34 percent.