Bernstein Liebhard LLP today announced that a lawsuit has been filed in the United States District Court for the Central District of California on behalf of a class (the “Class”) of investors who purchased Gulf Resources, Inc. (“Gulf Resources” or the “Company”) (NASDAQ: GFRE) common stock between the period of March 16, 2009 to April 26, 2011 (the “Class Period”). Plaintiffs allege violations of the Securities and Exchange Act of 1934 against Gulf Resources and certain individual defendants. According to the complaint, the company engaged in undisclosed related party transactions, and Chinese regulatory filings showed that the Company was materially smaller than it claimed to be. The complaint states that a report pointed to certain evidence indicating that Gulf Resources does not hold title to its Chinese operating subsidiaries, shareholders’ sole asset. Plaintiffs seek to recover damages on behalf of all Class members who purchased or otherwise acquired shares of Gulf Resources during the Class Period. If you purchased or otherwise acquired Gulf Resources shares during the Class Period, and either lost money on the transaction or still hold the shares, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than June 29, 2011. A “lead plaintiff” is a representative party that acts on behalf of other class members in directing the litigation. 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. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
Shares of Gulf Resources (Nasdaq:GFRE) have taken a tremendous swing upward. The stock is trading at $3.47 as of 3:51 p.m. ET, 20.1% above Monday's closing price of $2.89. Volume is at one million, 0.6 times the daily average of 1.7 million.
Gulf Resources (Nasdaq:GFRE) is trading at unusually high volume Wednesday with 5.2 million shares changing hands. It is currently at four times its average daily volume and trading up 19 cents (+4.5%).
Shares of Gulf Resources (Nasdaq:GFRE) were gapping up Tuesday morning with an open price 22.4% higher than Monday's closing price. The stock closed at $3.03 yesterday and opened today's trading at $3.71.