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The law firm of Cohen Milstein Sellers & Toll PLLC announced today that it has filed a class action complaint in the United States District Court for the Southern District of New York on behalf of purchasers of common stock of Longwei Petroleum Investment Holding Limited (“Longwei”) (NYSE: LPH) from May 17, 2010 through January 3, 2013, inclusive (the “Class Period”).
Longwei is an energy company engaged in the wholesale distribution of finished petroleum products in the People’s Republic of China. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about Longwei’s business and financial condition. Specifically, the Complaint alleges (1) Longwei failed to disclose a material related party investment totaling $32 million made by Longwei’s subsidiary, Shanxi Zhinghe Energy Conversion Co. Ltd.; (2) Longwei failed to disclose that Yongjun Cai, its Chief Executive Officer, was a minority owner of three of Longwei’s operating subsidiaries; and (3) Longwei greatly exaggerated its wholesale fuel sales. As a result of these materially false and misleading statements, Longwei’s stock was artificially inflated during the Class Period. On January 3, 2013, an internet report published by Geoinvesting.com disclosed these materially false and misleading statements and omissions. On this news, Longwei’s stock fell 73%, closing at $0.62 per share on January 3, 2013, down from $2.30 per share on January 2, 2013.
If you purchased shares in Longwei during the period from May 17, 2010 through January 3, 2013, inclusive, you may, no later than March 5, 2013, move the court to be appointed as Lead Plaintiff. There are certain legal requirements to serve as Lead Plaintiff. Any member of the proposed class may move the court to serve as Lead Plaintiff through counsel of their choice or may choose to remain an absent class member. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as Lead Plaintiff.