NEW YORK, July 8, 2011 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP ( www.kaplanfox.com) filed a class action suit against Longtop Financial Technologies Limited ("Longtop" or the "Company") (NYSE: LFT) that alleges violations of the Securities Exchange Act of 1934 on behalf of purchasers Longtop securities traded on an American stock exchange, including Longtop's American Depository Shares ("ADSs"), between October 25, 2007 and May 16, 2011, inclusive (the "Class").
The Lead Plaintiff deadline is July 22, 2011. The case is pending in the United States District Court for the Southern District of New York. A copy of the complaint may be obtained from Kaplan Fox or the Court.
The Complaint alleges 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"); but, 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, and thereby artificially inflated 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.
The Complaint further alleges 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%.If you are a member of the proposed Class, you may move the court no later than July 22, 2011 to serve as a lead plaintiff for the Class. You need not seek to become a lead plaintiff in order to share in any possible recovery. Plaintiff seeks to recover damages on behalf of the Class and is represented by Kaplan Fox & Kilsheimer LLP. Our firm, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions and actions involving financial fraud. For more information about Kaplan Fox & Kilsheimer LLP, or to review a copy of the complaint filed in this action, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, the action, your rights, or your interests, please contact: