NEW YORK, Feb. 25, 2011 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross LLP has filed a class action lawsuit against China Valves Technology, Inc. ("China Valves" or the "Company") (Nasdaq:CVVT) and certain of its officers. The class action (Civil Action No.: 11-cv-1116) pending in the Southern District of New York is on behalf of a class of all persons or entities who purchased or otherwise acquired China Valves securities during the period between January 12, 2010 and January 13, 2011 (the "Class Period"). The Complaint alleges violations of 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 China Valves securities during the Class Period and would like to serve as lead plaintiff for the class, you have until April 5, 2011 to ask the Court to appoint you. A copy of the complaint can be obtained at . To discuss this action, contact Rachelle R. Boyle at email@example.com 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.
China Valves develops, manufactures and markets low-, medium-, and high-pressure metal valves for customers in the electricity, petroleum, chemical, water, gas, nuclear power station and metal industries in China. The Complaint alleges that during the Class Period the Company and certain of its current and former executive officers issued material misrepresentations concerning its business, prospects and financial condition. Specifically, the Complaint alleges that the defendants: (i) issued false and misleading financial statements and press releases concerning the nature, quality and circumstances of the Company's major acquisitions, and (ii) failed to disclose the material, related-party nature of the transactions.
On January 13, 2011, Citron Research published a report that China Valves may be delisted from NASDAQ as it faces increased regulatory scrutiny over certain buyouts. Specifically, Citron Research stated that the financial results of Changsha Valve, an acquisition China Valves had made in 2010, have been overstated and that the acquisition was an improper related-party transaction.
In a reaction to this news, China Valves securities fell $1.57 per share or 18%, to close at $7.15 on January 13, 2011.
The Pomerantz Firm, with offices in New York, Chicago and Washington, D.C., 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: Rachelle R. Boyle Pomerantz Haudek Grossman & Gross LLP 888-476-6529 (ext. 237) firstname.lastname@example.org