Cohen Milstein Sellers & Toll PLLC, is conducting an investigation to determine whether Puda Coal, Inc. (“Puda Coal” or the “Company”) and certain of its officers, directors and/or underwriters made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and/or violated Sections 11 and 15 of the Securities Act of 1933. Several class action lawsuits have been filed in the U.S. District Court for the Southern District of New York by other law firms on behalf of all purchasers of the common stock of Puda (AMEX: PUDA) between September 15, 2009 and April 11, 2011, inclusive (the “Class Period”), including persons or entities who purchased Puda Coal's common stock pursuant and/or traceable to the Company's registration statement and prospectus supplement dated December 8, 2010. Puda Coal is a supplier of premium high grade cleaned coal used to produce coke for steel manufacturing in China. The Company is headquartered in Taiyuan, China. The complaints allege that Puda Coal and certain of its officers, directors and/or underwriters (“Defendants”) misrepresented and/or failed to disclose that: (1) prior to the Class Period, certain of the individual defendants fraudulently transferred Puda Coal's ownership interest to defendant Ming Zhao; (2) Puda Coal was reduced to the status of a shell company during the Class Period; (3) Puda Coal's reported operating results and financial condition were materially overstated; (4) Puda Coal's financial statements were not fairly presented in conformity with U.S. GAAP and were materially false and misleading; (5) Puda Coal was operating with material deficiencies in its system of internal control over its financial reporting; and (6) based on the foregoing, certain of the Defendants lacked a reasonable basis for their positive statements about the Company, its prospects and growth. Also according to the complaints, on April 8, 2011, analyst Alfred Little released a report charging that Puda Coal’s Chairman, defendant Ming Zhao, had secretly transferred ownership of Puda Coal’s sole operating entity, Shanxi Coal, to himself in 2009 without shareholder approval, citing “official government filings.” Little reported that this was done in order to raise money domestically, and to that end, Zhao and Shanxi Coal engaged in a series of transactions with China International Trust and Investment Company (“CITIC”) during the Class Period resulting in the Company being over a half a billion dollars in debt to CITIC with a 14.5% interest rate and defendant Zhao personally pocketing $37 million dollars. By January 2011, this debt had allegedly grown to $761 million.
The complaints also assert that on the same day Little’s report was published, Puda Coal issued a statement reporting that it was reviewing the allegations. Puda Coal shares dropped more than 34% to close at $6.00 on April 8 on extremely heavy volume. On Monday, April 11, Puda Coal announced that it had unanimously ratified its Audit Committee’s decision to launch a full investigation into Little’s allegations concerning the unauthorized transactions in the shares of Shanxi Coal. In addition, Puda Coal reported 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 [the] 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.”On April 11, the New York Stock Exchange halted trading in Puda Coal shares. Cohen Milstein encourages purchasers of Puda Coal stock or former employees with information concerning this matter to contact the firm. If you are a Puda Coal shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein’s Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at firstname.lastname@example.org. If you purchased the common stock of Puda Coal between September 15, 2009 and April 11, 2011, and wish to serve as lead plaintiff, you must move the Court no later than June 13, 2011 to request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may retain Cohen Milstein Sellers & Toll PLLC or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member. Cohen Milstein Sellers & Toll PLLC has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Philadelphia, and Chicago, and is active in major litigation pending in federal and state courts throughout the nation.
The firm’s reputation for excellence has repeatedly been recognized by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen Milstein Sellers & Toll PLLC has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total over a billion dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following: Steven J. Toll, Esq.Tyler GaffneyCohen Milstein Sellers & Toll PLLC1100 New York Avenue, N.W.West Tower, Suite 500Washington, D.C. 20005Telephone: (888) 240-0775 or (202) 408-4600Email: email@example.com; firstname.lastname@example.org Attorney Advertising