NEW YORK, Sept. 24, 2010 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross LLP has filed a class action lawsuit in the United States District Court, Southern District of New York against Duoyuan Global Water, Inc. ("Duoyuan Global Water" or the "Company") (NYSE:DGW) and certain of its top officials. The class action (Case No: 10 Civ. 7233) was filed on behalf of a class consisting of all persons or entities who purchased Duoyuan Global Water securities during the period from November 9, 2009 through September 13, 2010, inclusive (the "Class Period"). The Complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act and Rule 10b-5 promulgated thereunder.
Duoyuan Global Water engages in the manufacture and sale of water treatment equipments in the People's Republic of China. The Company, primarily through its chairman, chief executive officer and controlling shareholder, Wenhua Guo, maintains a substantial interconnection with Duoyuan Printing, Inc. (NYSE: DYP), a Beijing based manufacturer of commercial offset printing presses, which shares the same headquarters as Duoyuan Global Water. Wenhua Guo also served as chairman of Duoyuan Printing during the Class Period and is the beneficial owner of 100% of the equity interest in Duoyuan Global Water's majority shareholder, Duoyuan Investments Limited.
The Complaint alleges that throughout the Class Period, defendants knew or recklessly disregarded that their public statements concerning Duoyuan Global Water's business, operations, and prospects were materially false and misleading. Specifically, defendants made false and/or misleading statements and/or failed to disclose, among other things, that: (1) due to the substantial interconnection between Duoyuan Global Water and Duoyuan Printing, the existence of accounting improprieties and ineffective internal controls at Duoyuan Printing could negatively impact Duoyuan Global Water; and (2), as a result, during the Class Period the defendants lacked a reasonable basis for their statements about Duoyuan Global Water, its business, operations, prospects and growth.
On September 13, 2010, Duoyuan Printing announced a series of alarming management changes – including the resignation of its CEO, its chief financial officer, and at least four members of its board of directors – and the dismissal of its independent registered public accounting firm, Deloitte Touche Tohmatsu CPA Ltd. As a result of this news, shares of Duoyuan Global Water declined $8.60 per share, or more than 41%, to close on September 13, 2010, at $12.10 per share.
If you are a shareholder who purchased Duoyuan Global Water securities during the Class Period, you have until November 22, 2010 to ask the Court to appoint you as lead plaintiff for the class. A copy of the complaint can be obtained at . To discuss this action, contact Nicola Brown at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz Firm, with offices in New York, Chicago, Washington, D.C., Columbus, Ohio and Burlingame, California, 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 .
CONTACT: Pomerantz Haudek Grossman & Gross LLP Nicola Brown (888) 476.6529 (888) 4.POMLAW email@example.com