The law firm of Rigrodsky & Long, P.A. announces that it has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased the common stock of Puda Coal, Inc. (“Puda” or the “Company”) (NYSE Amex: PUDA) between November 13, 2009 and April 11, 2011, inclusive (the “Class Period”), seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”) (the “Complaint”) The case is styled as Alan Ginsberg v. Puda Coal, Inc., C.A. No. 1:11-CV-02671 (S.D.N.Y.). Click here to learn more and view a copy of the Complaint: http://www.rigrodskylong.com/news/PudaCoalInc-PUDA. The Complaint names Puda and certain of the Company’s current executive officers and directors as defendants. Puda through its indirect equity ownership in Shanxi Puda Coal Group Co., Ltd. (“Shangxi Coal”), supplies metallurgical coking coal to the industrial sector in the People’s Republic of China. The Complaint alleges that the Company and certain of its officers and directors issued materially false and misleading information in its filings with the United States Securities and Exchange Commission (“SEC”) concerning the Company’s financial condition and internal controls. On April 8, 2011, a report, entitled “Puda Coal Chairman Sells Half the Company; Pledges the Other Half to Chinese PE Investors,” by Alfred Little was initially posted on Business Insider (the “Report”). As alleged in the Complaint, that report detailed the September 9, 2009, transfer of the Company’s indirect 90% interest in Shanxi Coal to defendant Ming Zhao without apprising the Company’s shareholders, or conducting a shareholder vote. The Report further detailed the subsequent transactions with China International Trust and Investment Company (“CITIC”) which caused the Company to incur massive debt and a greatly diminished equity interest – from 90% to 51% - in Shanxi Coal. The price of Puda common stock fell more than 34%, from a close of $9.10 per share on April 7, 2011, the day before the issuance of the Report, to a close $6.00 per share on extremely heavy trading volume on April 8, 2011, the day the Report was issued.
The allegations of the Report were, to an extent, corroborated on April 11, 2011 when the Company issued a press release announcing that it was conducting an investigation into the allegations and “[a]lthough the investigation is in its preliminary stages, evidence supports the allegation that there were transfers by Mr. Zhao in subsidiary ownership that were inconsistent with disclosure made by the Company in its public securities filings.” The press release further announced that defendant Ming Zhao had agreed to a voluntarily leave of absence as Chairman of the Board of the Company until the investigation was complete, and that trading in the Company’s stock had been halted. Because there is no current market for Puda common stock, the stock is now, effectively, worthless.If you wish to serve as lead plaintiff, you must move the Court no later than June 13, 2011. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Noah R. Wortman, Case Development Director of Rigrodsky & Long, P.A., 919 North Market Street, Suite 980 Wilmington, Delaware, 19801 at (888) 969-4242, by e-mail to firstname.lastname@example.org, or via our website: http://www.rigrodskylong.com/news/PudaCoalInc-PUDA. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a 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 do nothing and remain an absent class member.
Rigrodsky & Long, P.A., with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.Attorney advertising. Prior results do not guarantee a similar outcome.