Newman Ferrara LLP announces that a class action lawsuit has been filed on behalf of shareholders of Longwei Petroleum Investment Holding Limited (“Longwei”) (NYSE MKT: LPH) against Longwei and certain of its executive officers, alleging violations of federal securities laws.
Investors who purchased Longwei securities between May 17, 2010 and January 3, 2013 (the “Class Period”) may apply with the Court to be appointed Lead Plaintiff no later than March 5, 2013. The Lead Plaintiff will direct the litigation on behalf of the other class members. The Court will select the Lead Plaintiff from among applicants claiming the largest investment losses.
Longwei is a China-based energy company engaged in the transporting, storing, and selling of finished petroleum products. The Complaint alleges that throughout the Class Period, Longwei and certain of its executive officers issued materially false and misleading statements regarding Longwei’s business operations and financial performance.
Specifically, on January 3, 2013, investment analyst GeoInvesting.com published a report revealing that Longwei had inflated its November 2012 sales figures for its fuel depot storage facilities in Taiyuan, Shanxi Province, and Gujiao and had failed to disclose a $32 million investment in a tourism business made by Longwei’s subsidiary, Shanxi Zhonghe Energy Conversion Co., Ltd. On this news, shares of Longwei stock dropped 73% to a January 3, 2013 closing price of $0.62 per share.
Investors who purchased shares of Longwei stock during the Class Period are encouraged to contact Newman Ferrara attorney Roy Shimon at firstname.lastname@example.org or call (212) 619-5400 to discuss this lawsuit or the Lead Plaintiff process.
Whistleblowers: Persons with knowledge that may aid in the investigation of this matter are encouraged to contact the firm. Under the Dodd-Frank Wall Street Reform Bill, whistleblowers are protected from employer retaliation and may be entitled to as much as 30 percent of the recovery if the information provided leads to a successful action.
Newman Ferrara maintains a multifaceted practice based in New York City with attorneys specializing in complex commercial and multi-party litigation, securities fraud and shareholder litigation, consumer protection, civil rights, and real estate. For more information, please visit the firm website at www.nfllp.com.