Abraham, Fruchter & Twersky, LLP Announces Filing Of Securities Class Action Lawsuit Against Longwei Petroleum Investment Holding Limited
Abraham, Fruchter & Twersky, LLP announces that a securities class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of all persons or entities that purchased the common stock of Longwei Petroleum Investment Holding Limited (“Longwei” or the “Company”) (NYSE: LPH) from May 17, 2010 through January 3, 2013, inclusive (the “Class Period”), alleging violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder against the Company and certain of its officers and directors (the “Complaint”).
Longwei, based in Shanxi, China, is engaged in the wholesale distribution of finished petroleum products in the People's Republic of China. The Complaint asserts allegations from a January 3, 2013 article published by investment research firm GeoInvesting titled “Longwei Petroleum: The Most Brazen China-Based U.S. Listed RTO To Date.” According to the article, Longwei exaggerated its November 2012 sales figures for its fuel depot storage facilities in Taiyuan and Gujiao, China, and failed to disclose a $32 million related-party investment in a tourism business made by Longwei's subsidiary, Shanxi Zhonghe Energy Conversion Co., Ltd. The article also alleges a connection between Longwei and Puda Coal, Inc., another China-based company in which two of its officers and directors were charged with securities fraud by the United States Securities and Exchange commission.
On this news, the price per share of Longwei common stock fell $1.68, or 73%, to close that day at $0.62, on heavy trading volume. Since the announcement, trading in Longwei common stock has been halted.
If you purchased Longwei common stock from May 17, 2010 through January 3, 2013, inclusive, and you wish to serve as lead plaintiff in this action, you must move the Court no later than March 5, 2013. 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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