“The auditor at Longtop Financial Technologies Ltd…quit and a U.S. regulator has opened a related probe, deepening concern about possible accounting irregularities at Chinese companies. The resignation on Sunday of the auditor, Deloitte Touche Tohmatsu CPA Ltd, came three days after Longtop, which makes software for Chinese financial services companies, said its chief financial officer offered to resign. Based in Xiamen, Longtop had a $1.08 billion market value before a May 17 trading halt in New York, though that value had fallen by more than half since November."According to Longtop, Deloitte said its resignation stemmed in part from "recently identified falsity" in Longtop's financial records, as well as "deliberate interference" by Longtop management in the audit process. Longtop also said Deloitte could no longer rely on its prior audit reports for the company. Separately, Longtop said the U.S. Securities and Exchange Commission has opened an inquiry. About Kahn Swick & Foti, LLC KSF, whose partners include the Former Louisiana Attorney General Charles C. Foti, Jr., is a law firm focused on securities class action and shareholder derivative litigation with offices in New York and Louisiana. KSF's lawyers have significant experience litigating complex securities class actions nationwide on behalf of both institutional and individual shareholders. Recent cases include In re Virgin Mobile USA IPO Litigation, 2:07-cv-05619-SDW-MCA (D. N.J.), Co-Lead Counsel, $19.5 Million Settlement; In re BigBand Networks, Inc Securities Litigation, 3:07-CV-05101-SBA (C.D. Cal.), Co-Lead Counsel, $11 million settlement; In re U.S. Auto Parts Networks, Inc. Securities Litigation, 2:07-cv-02030-GW-JC (C.D. Cal.), Lead Counsel, $10 million settlement. KSF is also federally court-appointed Co-Lead Counsel in THE shareholder derivative cases against BP and Bank of America (Merrill Lynch merger) emanating from their recent multi-billion dollar economic declines. To learn more about KSF, you may visit www.ksfcounsel.com.
Kahn Swick & Foti, LLC ("KSF") and KSF partner, the former Attorney General of Louisiana, Charles C. Foti, Jr., remind investors that only 60 days remain to file lead plaintiff applications in a securities fraud class action lawsuit against Longtop Financial, Inc. (“Longtop” or the “Company”) (NYSE: LFT). The lawsuit was filed in the United States District Court for the Central District of California on behalf of purchasers of the common stock of Longtop between June 29, 2009 and April 25, 2011, inclusive (the “Class Period”). What You May Do If you are a Longtop shareholder and would like to discuss your legal rights and how this case might affect you and your right to recover for your economic loss, you may, without obligation or cost to you, e-mail or call KSF Managing Partner, Lewis Kahn ( firstname.lastname@example.org), toll free, 877-515-1850, or via cell phone any time at 504-301-7900, or KSF Director of Client Relations, Neil Rothstein, Esq. ( email@example.com), toll free at 877-694-9510, or via cell phone any time at 330-860-4092. If you wish to serve as a lead plaintiff in this class action by overseeing lead counsel with the goal of obtaining a fair and just resolution, you must request this position by application to the Court by July 22, 2011. Any member of the putative 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. KSF also encourages anyone with information regarding Longtop’s conduct during the period in question to contact the firm, including whistleblowers, former employees, shareholders and others. About the Lawsuit The complaint charges Longtop and certain of its officers and executives with violations of the Securities Exchange Act of 1934. The lawsuit closely parallels an article by Reuter’s today: