The Rosen Law Firm, P.A. announces that it is investigating potential securities claims against Puda Coal, Inc. (NYSEAmex: PUDA) resulting from allegations that the Company may have issued materially false financial statements and information to investors. On April 8, 2011 a report surfaced on an investor website alleging that “Puda Coal Chairman secretly sold half the Company and pledges the other half to Chinese PE investors.” According to the report, beginning in September 2009 Puda Coal Chairman Ming Zhao improperly transferred Shaxi Coal, Puda’s sole Chinese operating subsidiary, to himself through a series of transactions. The report states that in July 2010, Zhao sold 49% of his interest in Shanxi Coal to a private equity firm for RMB245 million ($37.1 million) and pocketed the proceeds. Zhao’s remaining 51% interest was pledged as security so the Company could obtain a three year loan from the private equity firm for RMB 2.5 billion ($379 million). The report states that Zhao attempted to secretly return a portion of Shanxi Coal to its rightful owner by transferring his remaining interest to subsidiaries controlled by the Company. As a result of these transactions, the report concludes the Company’s audited financial statements for 2009 and 2010 are false and misleading. The adverse information about the Company in the report caused the Company’s stock to lose more than a third of its value on April 8, 2011. The Rosen Law Firm is preparing a securities class action lawsuit on behalf of Puda Coal investors to recover their investment losses. If you purchased or acquired Puda Coal securities at any time prior to April 9, 2011 and would like to join the class action, please visit the website at http://rosenlegal.com. You may also contact Phillip Kim, Esq. or Jonathan Horne, Esq. of The Rosen Law Firm toll free at 866-767-3653 or via e-mail at email@example.com or firstname.lastname@example.org. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation.
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