Puda Coal, Inc. (AMEX: PUDA) shareholder litigation in connection with alleged securities fraud
Levi & Korsinsky announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Puda Coal, Inc. (“Puda” or the “Company”) (AMEX: PUDA) who purchased between November 13, 2009 and April 11, 2011 (the “Class Period”).
The complaint alleges that during the Class Period, Puda and certain of its officers and executives violated the Securities Exchange Act of 1934. In particular, the complaint alleges, among other claims that: (a) prior to the Class Period, certain of the individual defendants fraudulently transferred Puda’s ownership interest to defendant Ming Zhao; (b) the Company was a shell company during the Class Period; and (c) Puda’s financial statements were materially false and misleading.
On April 8, 2011, a report on an investment website alleged that Puda failed to disclose certain Company transfers and questionable trading by the Company’s chairman, Ming Zhao. On April 11, 2011, the Company’s Audit Committee announced that “evidence supports the allegation that there were transfers by Mr. Zhao in subsidiary ownership that were inconsistent with disclosure made by the Company in its public securities filings.”
If you are a member of the class and suffered a loss in Puda stock, you have until June 13, 2011 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery is not affected by the decision whether or not to serve as a lead plaintiff. To obtain additional information about your rights fill out the form above.