NEW YORK, April 14, 2011 (GLOBE NEWSWIRE) -- The Rosen Law Firm, P.A. today announced that it has filed a class action lawsuit on behalf of investors who purchased the securities of Puda Coal, Inc. ("Puda Coal" or the "Company") (AMEX:PUDA) during the period from November 13, 2009 to April 8, 2011, inclusive (the "Class Period"), seeking to recover damages for violations of federal securities laws.
To join the Puda Coal class action, visit the firm's website at , or call Laurence Rosen, Esq. or Phillip Kim, Esq., toll-free, at 866-767-3653; you may also email lrosen@rosenlegal.com or pkim@rosenlegal.com for information on the class action. The case is pending in the U.S. District Court for the Central District of California.
NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY CHOOSE TO DO NOTHING AT THIS POINT AND REMAIN AN ABSENT CLASS MEMBER.
The Complaint asserts violations of the Securities Exchange Act against Puda Coal and its officers and directors for misrepresenting the Company's ownership interest of the Company's operating subsidiary Shanxi Puda Coal Group Co. Ltd ("Shanxi Coal."), and related unauthorized transactions involving Shanxi Coal and Puda Coal's Chairman Ming Zhao. According to the Complaint, on April 8, 2001 a stock market analyst, issued a report claiming that Ming Zhao had secretly engaged in related party transactions in order to "steal" half of Puda Coal's ownership interest in Shanxi Coal and pledged the other half of the Company's ownership of Shanxi Coal to Chinese private equity investors (the "Report").
In reaction to the adverse information in the Report, the price of Puda Coal stock fell 34% on April 8, 2010. On April 11, 2011 (the following trading day), trading in Puda Coal's stock was halted before market open. Later that day, Puda Coal issued an announcement admitting that "evidence supports the allegations that there were transfers by Mr. Zhao in subsidiary ownership that were inconsistent with the disclosure made by the Company in its public securities filings." As a result of this adverse information the Complaint alleges that investors have been damaged.
If you wish to serve as lead plaintiff, you must move the Court no later than June 13, 2011. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Laurence Rosen, Esq. or Phillip Kim, Esq. of The Rosen Law Firm, toll-free, at 866-767-3653, or via e-mail at lrosen@rosenlegal.com or pkim@rosenlegal.com. You may also visit the firm's website at .
The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation.
CONTACT: Laurence Rosen, Esq. Phillip Kim, Esq. The Rosen Law Firm P.A. 275 Madison Avenue, 34th Floor New York, New York 10016 Tel: (212) 686-1060 Weekends Tel: (917) 797-4425 Toll Free: 1-866-767-3653 Fax: (212) 202-3827 lrosen@rosenlegal.com pkim@rosenlegal.com www.rosenlegal.com