WILMINGTON, Del.--(BUSINESS WIRE)--Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Central District of California on behalf of all persons or entities that purchased the common stock of Longwei Petroleum Investment Holding Limited (“Longwei” or the “Company”) (NYSE MKT: LPH) between May 17, 2010 and January 3, 2013, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased shares of Longwei during the Class Period, or purchased shares prior to the Class Period and still hold Longwei, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 825 East Gate Boulevard, Suite 300, Garden City, NY at (888) 969-4242, by e-mail to firstname.lastname@example.org, or at: http://www.rigrodskylong.com/investigations/longwei-petroleum-investment-holding-limited-lph.
Longwei is an energy company engaged in the wholesale distribution of finished petroleum products in the People’s Republic of China. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects. Specifically, the Complaint alleges that: (1) the Company exaggerated its November 2012 sales figures for its fuel depot storage facilities in Taiyuan and Gujiao, Shanxi; (2) defendants failed to disclose a $32 million investment in a tourism business made by Longwei’s subsidiary, Shanxi Zhinghe Energy Conversion Co., Ltd.; and (3) as a result of the foregoing, the Company’s statements regarding its business, operations and financial performance were materially false and misleading at all relevant times. As a result of defendants’ false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on January 3, 2012, a report published on the Internet by GeoInvesting.com alleged that Longwei has exaggerated its true financial performance by claiming substantial product sales from facilities that, in reality, were either idled or showed minimal activity. In addition, the report alleges that based on a comparison of Longwei’s regulatory filings with Chinese authorities and the Company’s 2011-2012 filings with the SEC, Longwei never disclosed a $32 million investment – out of a potential total commitment of $222 million – in a tourism business made by Longwei’s Shanxi Zhonghe Energy Conversion Co., Ltd. subsidiary. On this news, shares in Longwei fell 73%, closing at $0.62 per share on January 3, 2013, from a close of $2.30 per share on January 2, 2013, on volume of over 14 million shares.
If you wish to serve as lead plaintiff, you must move the Court no later than March 5, 2013. A lead plaintiff is a representative party acting 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. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed 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.
While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.
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