The law firm of Lieff, Cabraser, Heimann & Bernstein, LLP announces that class action lawsuits have been brought on behalf of all persons who purchased the securities of Puda Coal, Inc. (“Puda Coal” or the “Company”) (AMEX:PUDA) between September 15, 2009 and April 11, 2011, inclusive (the “Class Period”), including purchasers of Puda Coal securities pursuant or traceable to the Company’s equity offering (the “Offering”) on or about December 8, 2010. If you purchased Puda Coal securities during the Class Period and/or pursuant or traceable to the Offering, you may move the Court for appointment as lead plaintiff by no later than June 13, 2011. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the actions. Puda Coal shareholders who wish to learn more about the actions and how to seek appointment as lead plaintiff may visit Lieff Cabraser’s website at http://lieffcabraser.com/securities-investor-fraud/case/464/puda-coal-inc-securities-class-litigation or contact Sharon M. Lee of Lieff Cabraser toll free at (800) 541-7358. Background on Puda Coal Securities Class Litigation The actions are brought against Puda Coal, certain of Puda Coal’s officers and directors and the Company’s independent auditor for violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. Puda Coal, headquartered in Taiyuan, Shanxi Province in the People’s Republic of China, is a supplier of premium cleaned coal used to produce coke for steel manufacturing in China. The Company’s operations are conducted exclusively by Shanxi Puda Coal Group Co., Ltd. (“Shanxi Coal”), an entity controlled by Puda Coal. The actions allege that during the Class Period, defendants failed to disclose the following material adverse facts which they knew or recklessly disregarded: (1) that the Company’s Chairman, defendant Ming Zhao, had engaged in unauthorized transfers of the ownership/shares of Shanxi Coal to himself; (2) that Zhao had sold 49 percent of Shanxi Coal; (3) that the Company’s ownership stake in Shanxi Coal was substantially less than it had claimed; (4) that the Company lacked adequate internal controls; and (5) as a result of the foregoing, the Company’s financial statements were materially false and misleading at all relevant times.
On April 8, 2011, an investor website published a research report alleging that through a series of transactions beginning in September 2009, Zhao improperly transferred shares of Shanxi Coal to himself and then, in July 2010, sold 49% of the interest in Shanxi Coal for RMB 245 million ($37.1 million) and later pledged the remaining interest in Shanxi Coal as collateral for a three year loan for RMB 2.5 billion ($379 million). Following this news, the price of Puda Coal shares fell $3.10 per share, or nearly 33%, to close at $6.00 per share on April 8, 2011, on unusually heavy trading volume. On the next trading day, April 11, 2011, Puda Coal issued a press release stating that, “[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. Mr. Zhao has agreed to a voluntarily leave of absence as Chairman of the Board of the Company until the investigation is complete.” Following this announcement, the New York Stock Exchange halted trading in Puda Coal stock on April 11, 2011.About Lieff Cabraser Lieff, Cabraser, Heimann & Bernstein, LLP, with offices in San Francisco, New York and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs’ law firms in the nation. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs’ law firms in the United States to receive this honor for the last eight consecutive years. For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.