NEW YORK, May 23, 2014 (GLOBE NEWSWIRE) -- Pomerantz LLP has filed a class action lawsuit against Lihua International, Inc. ("Lihua" or the "Company") (Nasdaq:LIWA) and certain of its officers. The class action, filed in United States District Court, Central District of California, and docketed under 2:14-cv-03503, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Lihua securities between August 9, 2012 and April 30, 2014 both dates inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Lihua securities during the Class Period, you have until June 30, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Lihua International Inc. is a Delaware corporation that purports to manufacture, market, and distribute refined copper products through its wholly-owned subsidiaries Danyang Lihua Electron Co., Ltd., ("Lihua Electron") and Jiangsu Lihua Copper Industry Co., Ltd. ("Lihua Copper").
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, and failed to disclose material adverse facts about the Company's business, operations, prospects and performance. Specifically, Defendants issued false and misleading statements about the Company's business and financial condition. Throughout the Class Period, the Company failed to disclose that: (1) Lihua's business experienced a significant downturn starting from late 2012; (2) Lihua's production activities slowed down dramatically in 2013, and have almost ceased after January 31, 2014; (3) Lihua's warehouse has been seized by the People's Republic of China court; (4) defendant Jianhua Zhu, Lihua's Chairman and CEO, attempted to move inventory in order to hide them from creditors, and is now being investigated by the police for larceny.
On March 28, 2014, People's Daily, the official newspaper of the government of China, published a report exposing Lihua's troubles (the "People's Daily Report"). The People's Daily Report stated that: (1) Lihua's cash flow has ceased, and its warehouse has been seized and sealed by the local court; (2) Lihua's production activities substantially decreased in 2013, and have nearly ceased after the 2014 Spring Festival (January 31, 2014); (3) Zhu attempted to move Lihua's inventory in order to hide assets from creditors, and as a result, he is now being investigated by the local police for larceny.
U.S. investors were made aware of these problems for the first time on April 30, 2014, when GeoInvesting publicized the contents of the People's Daily Report. On this news, shares of Lihua's stock to fell by more than 50% on April 30, 2014, from $4.33 to $2.08 per share, before it was halted by NASDAQ stock exchange.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT: Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
