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 2014