EQUITY ALERT: The Rosen Law Firm Announces Investigation Of Securities Claims Against China Commercial Credit, Inc. – CCCR

The Rosen Law Firm P.A. announces that it is investigating potential securities claims against China Commercial Credit, Inc. (“CCCR”, or the “Company”) (NASDAQ:CCCR) resulting from allegations that the Company may have sold stock to investors while omitting to disclose material financial information affecting the value of its shares.

CCCR is a microfinance company providing loans and loan guarantees to small-to-medium enterprises and individuals in Jiangsu Province. In 2013, CCCR earned net revenues of about $1.7 million from its loan guarantee business.

In a February 18, 2014 Forbes article, CCCR’s CEO was quoted as saying that “[highly risky loans] among microcredit companies [in China] are not widespread.” On May 9, 2014, in a public offering, CCCR sold 1,650,386 of its shares at $3.99 per share, with net proceeds to it of $6.14 million. In the prospectus, dated May 8, 2014, CCCR represented that it estimates loss on its guarantee business to be about 1% of the contract amount.

On July 25, 2014, CCCR issued a press release stating that (a) it had paid out $5.4 million in loan guarantees in Q1 2014, and had received only $0.7 million in cash and $2.1 million in one-year notes from the borrowers, and (b) it had paid out $3.7 million in guarantees in Q2 2014, of which it had only recovered $1.1 million, and converted $1.6 million of it to one-year notes. On this news, CCCR’s stock price fell $1.20, or 32%, damaging investors.

The Rosen Law Firm is preparing a securities class action lawsuit on behalf of CCCR investors. If you purchased CCCR stock before July 25, 2014, or in the secondary offering through a prospectus dated May 8, 2014, please visit the website at http://rosenlegal.com to join the class action or for more information. You may also contact Jonathan Horne, Esq., or Phillip Kim, Esq. of The Rosen Law Firm toll free at 866-767-3653 or via e-mail at jhorne@rosenlegal.com or pkim@rosenlegal.com.

The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation.

Attorney Advertising. Prior results do not guarantee a similar outcome.

Copyright Business Wire 2010

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX