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Rigrodsky & Long, P.A. Announces Class Action Lawsuit Against Longtop Financial Technologies Limited - LFT

^{Published on 2011-05-25 16:45:53 - Market Wire}
 

WILMINGTON, Del.--([ BUSINESS WIRE ])--[ Rigrodsky & Long, P.A. ] announces that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of all persons or entities who purchased or otherwise acquired the stock of Longtop Financial Technologies Limited (aLongtopa or the aCompanya) (NYSE: [ LFT ]) between June 29, 2009 and April 25, 2011, inclusive (the aClass Perioda), alleging violations of the Securities Exchange Act of 1934 (the aComplainta).

If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact [ Timothy J. MacFall, Esquire ] or [ Noah R. Wortman, Case Development Director ] of Rigrodsky & Long, P.A., 919 North Market Street, Suite 980 Wilmington, Delaware, 19801 at (888) 969-4242, by e-mail to [ info@rigrodskylong.com ], or via our website: [ http://www.rigrodskylong.com/news/LongtopFinancialTechnologies ].

The Complaint names Longtop, certain of the Companya™s current executive officers and directors as defendants. Longtop, together with its subsidiaries, designs, develops, and delivers software solutions and information technology (IT) services to the financial services industry in the Peoplea™s Republic of China.

The Complaint alleges that the Company and certain of its officers and directors issued materially false and misleading information to its shareholders. Beginning April 25, 2011, Citron Research and others issued a series of reports which exposed potential accounting fraud and the nondisclosure of related party transactions at Longtop.

On May 23, 2011, Longtop issued a press release wherein it announced that the Companya™s registered independent accounting firm, Deloitte Touche Tohmatsu CPA Ltd. (aDTTa), resigned as the Companya™s auditor. In its resignation letter, DTT stated that it was resigning as the result of, among other things: (1) the recently identified falsity of the Companya™s financial records in relation to cash at bank and loan balances (and possibly in sales revenue); (2) the deliberate interference by certain members of Longtop management in DTTa™s audit process; and (3) the unlawful detention of DTTa™s audit files. DTT further stated that DTT was no longer able to rely on managementa™s representations in relation to prior period financial reports, that continued reliance should no longer be placed on DTTa™s audit reports on the previous financial statements, and DTT declined to be associated with any of the Companya™s financial communications in 2010 and 2011.

Longtop further announced that its Audit Committee has retained U.S. legal counsel and authorized the retention of forensic accountants to conduct an independent investigation into the matters raised by DTTa™s resignation letter. The SEC has also advised Longtop that it was conducting an inquiry regarding related matters.

As result, Longtop is unable to determine the full effect of these matters, including whether any restatement of its historical financial statements will be required, until the Audit Committee completes its review. The Company has stated that it cannot predict when it will announce its financial results for the fourth quarter of 2011, or when it will file its Form 20F with the SEC for the fiscal year ended March 31, 2011.

Longtop also announced that Derek Palaschuk, the Companya™s CFO, tendered his resignation by letter, dated May 19, 2011, and the Board of Directors has taken his resignation under advisement.

Trading in Longtopa™s stock has been halted since May 17, 2011 and, to date, has not resumed.

If you wish to serve as lead plaintiff, you must move the Court no later than July 22, 2011. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class membera™s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

While [ Rigrodsky & Long, P.A. ] did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, [ regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation ], including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.

Attorney advertising. Prior results do not guarantee a similar outcome.