Science & Technology
Science and Technology
Science and Technology 
Fri, June 3, 2011
Thu, June 2, 2011
MURRAY, FRANK & SAILER LLP Announces Investigation of Longtop Financial Technologies, Limited.
NEW YORK--([ BUSINESS WIRE ])--MURRAY, FRANK & SAILER LLP is investigating securities fraud claims against Longtop Financial Technologies, Limited (aLongtopa or the aCompanya) (NYSE: LFT) and certain of its officers and/or directors, on behalf of purchasers of Longtop securities between June 29, 2009 and May 17, 2011, inclusive (the aClass Perioda).
The investigation concerns violations of the Securities Exchange Act of 1934 (the aExchange Acta) that occurred when the Company and certain of its officers and/or directors issued materially false and misleading statements or omitted to state material information during the Class Period regarding Longtopa™s accounting policies and business operations. As a result of these misstatements, Longtopa™s stock traded at artificially inflated prices throughout the Class Period.
Between April 26, 2011 and May 9, 2011, Citron Research, John Hempton of Bronte Capital, and OLP Global issued reports on Longtop that outlined concerns about the Company and its public disclosures. Among the concerns outlined were (1) margins substantially in excess of the Companya™s competitors; (2) an aunconventional staffing modela under which the majority of the Companya™s employees were not directly employed by the Company; (3) allegations of previous misdeeds by the Companya™s Chairman and CEO, including a previous lawsuit for unfair business practices; (4) certain transfers by the Companya™s Chairman of the Companya™s stock to his friends and employees; (5) questions about the Companya™s claims regarding its cloud-based storage service; and (6) questions about the Companya™s accounting figures.
On May 17, 2011, trading of the Companya™s ADSs was halted on NYSE, pending an announcement by the Company. The following day, May 18, 2011, the Company announced that it would not release its financial results for the fourth quarter of 2010 and fiscal year 2010 on May 23, 2011, as previously scheduled. Instead, on May 23, 2011, the Company issued a press release announcing, among other things, (1) the resignation of the Companya™s CFO; (2) the resignation of the Companya™s auditor, Deloitte Touche Tohmatsu CPA Ltd. (aDTTa), due to the DTTa™s belief that the Companya™s accounting records were false, and managementa™s interference with the audit process; (3) that the SEC was conducting an inquiry into the Company regarding matters related to DTTa™s resignation; and (4) that the Company had initiated an independent investigation regarding matters related to DTTa™s resignation.
If you purchased Longtop securities within the Class Period, and you wish to discuss this investigation, or have any questions concerning this notice or your rights or interests with respect to these matters, please contact us.