NEW YORK (TheStreet) -- Lihua International (LIWA) shares cratered more than 80% to an all-time low of 30 cents on Thursday amid the announcement of a class action lawsuit against the company in the United States District Court for the Central District of California.
The law firm of Holzer & Holzer announced the lawsuit on behalf of investors who purchased Lihua stock between Aug. 9, 2012 and April 30, 2014. The suit alleges Lihua "overstated its assets and financial performance, and failed to disclose that cash flow and production activities had substantially decreased." Those who wish to participate in the suit must do so by June 30.
More than 2.2 million shares had changed hands by 12:34 p.m., which dwarfed the average volume of 56,128.