This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Longwei Petroleum Investment Holding Limited

Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) ( http://www.rgrdlaw.com/cases/longwei/) today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Longwei Petroleum Investment Holding Limited (“Longwei”) (NYSE:LPH) common stock during the period between May 17, 2010 and January 3, 2013 (the “Class Period”).

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from January 4, 2013. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/longwei/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges Longwei and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Longwei is an energy company based in the People’s Republic of China that engages in the wholesale distribution of finished petroleum products.

The complaint alleges that, during the Class Period, defendants issued materially false and misleading statements regarding the Company’s financial performance and future prospects. Specifically, it alleges that defendants misrepresented and/or failed to disclose the following adverse facts: (a) that, contrary to Longwei’s Class Period statements that it had taken action to provide shareholders with more transparent disclosures and to keep investors better “informed” as to corporate activities and the Company’s financial condition, Longwei’s Class Period financial reports and statements contained false and misleading statements and omissions; (b) that, contrary to Longwei’s Class Period statements that it had intentionally increased inventory of crude products “to take advantage of additional product purchases during a period of fluctuating prices,” the Company’s inventory “on-hand” was increasing during the Class Period because the Company was experiencing lower demand and decreasing sales; (c) that, contrary to Longwei’s Class Period statements that it was funding its corporate acquisitions of additional operating facilities, including the acquisition of a facility from Huajie Petroleum Co., Ltd., from “operating cash flow from operations,” Longwei was instead obtaining and funding these acquisitions with the millions of dollars being generated through the exercise of warrants to acquire Longwei stock issued in its October 2009 private placement; (d) that, contrary to Longwei’s Class Period reports of strong demand fueling quarter after quarter of “record revenues,” Longwei’s facilities in the cities of Taiyuan and Gujiao in China’s Shanxi Province were not operating as profitably as represented by Longwei during the Class Period; (e) that, contrary to Longwei’s Class Period financial reports filed with the SEC, Longwei was not disclosing a $32 million investment in a tourism business made by its subsidiary Shanxi Zhonghe Energy Conversion Co., Ltd.; (f) that, contrary to Longwei’s description of its Class Period corporate acquisitions, Ming Zhao and Puda Coal Group had undisclosed ties to Longwei’s Zhonghe and Huajie facility acquisitions; (g) that, contrary to Longwei’s statements that its Class Period financial reports complied with Generally Accepted Accounting Principals, a minority interest in Longwei’s Taiyuan Facility owned by defendant Cai Yongjun, Longwei’s founder, CEO and Chairman, was not reflected in the Company’s balance sheet as a non-controlling interest during the Class Period; (h) though Longwei’s 2011 Annual Report stated that Longwei’s wholly-owned subsidiary Shanxi Heitan Zhingyou Petrochemical Co., Ltd. was an operating subsidiary with taxable income during fiscal 2011, the Company’s 2012 Annual Report would state that Zhingyou was a non-operating subsidiary during fiscal 2012 and that Zhingyou generated no taxable income for Longwei during fiscal 2011; (i) though Longwei’s 2011 Annual Report stated that Zhingyou reported operations at its Gujiao Facility during fiscal 2011, the Company’s Tax Reconciliation Report filed on June 29, 2012 for the calendar year 2011 stated that Longwei operating subsidiary Taiyuan Longwei Economic & Trade Co., Ltd. was Longwei’s only facility that generated taxable revenue and paid income tax and VAT tax for calendar year 2011; (j) that, as a result of the foregoing, Longwei was not on track to “repeat the success of [Longwei’s 2007] Gujiao acquisition with the near-term closing of the assets of the Huajie facility” or to “nearly double [its] overall capacity”; and (k) that, as a result of the foregoing, contrary to its repeated Class Period statements, Longwei was not on track to achieve $70 million in net income on $500 million in revenues in fiscal 2011 or $78 million in net income on $576 million in revenues in fiscal 2012.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,667.14 +36.87 0.21%
S&P 500 2,097.09 +3.84 0.18%
NASDAQ 5,101.63 +12.4240 0.24%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs