By GlobeNewswire, February 22, 2013, 12:47:00 PM EDT
NEW YORK, Feb. 22, 2013 (GLOBE NEWSWIRE) -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit against Longwei Petroleum Investment Holding Ltd. ("Longwei" or the "Company") (NYSE MKT:LPH) and certain of its officers. The class action filed, in United States District Court, Southern District of New York, and docketed under 13-Civ-278, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of Longwei between October 13, 2009 and January 2, 2013, both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of 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 Longwei securities during the Class Period, you have until March 5, 2013 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 firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
Longwei is an energy company that, through its subsidiaries, is involved in oil and gas operations in the People's Republic of China. The Company's operations consist of transporting, marketing and selling finished petroleum products.
The Complaint alleges that throughout the Class Period, the Company made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, the Company made false and/or misleading statements and/or failed to disclose that: (i) the Company grossly inflated its November 2012 sales figures for at least two of its fuel depot storage facilities; (ii) the Company failed to disclose a $32 million investment in a tourism business made by Longwei's subsidiary, Shanxi Zhonghe Energy Conversion Co., Ltd.; (iii) the Company failed to reflect on its balance sheet a non-controlling interest owned by its Chief Executive Officer; (iv) the Company improperly classified at least one subsidiary as a non-operating subsidiary to avoid paying income taxes; (v) the Company lacked adequate internal and financial controls; and (vi) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On January 3, 2013, GEOInvesting.com published a report revealing, among other things, that the Company inflated its November 2012 sales figures by several hundred multiples for its fuel depot storage facilities in Taiyuan and Gujiao, Shanxi Province.
On this news, Longwei stock declined $1.68 per share or nearly 73%, to close at $0.6244 per share on January 3, 2013.
The Pomerantz Firm, with offices in New York, Chicago, 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. WilloughbyPomerantz Grossman Hufford Dahlstrom & Gross LLPrswilloughby@pomlaw.com
Source: Pomerantz Grossman Hufford Dahlstrom & Gross LLP