Science & Technology
Tue, June 14, 2011Mon, June 13, 2011Fri, June 10, 2011Thu, June 9, 2011Wed, June 8, 2011Tue, June 7, 2011Mon, June 6, 2011Sat, June 4, 2011Fri, June 3, 2011Thu, June 2, 2011Wed, June 1, 2011Tue, May 31, 2011Mon, May 30, 2011Fri, May 27, 2011Thu, May 26, 2011Wed, May 25, 2011Tue, May 24, 2011Mon, May 23, 2011Sun, May 22, 2011Fri, May 20, 2011Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Longtop Financial Technologies Limited
Published in Science and Technology on Thursday, June 2nd 2011 at 19:20 GMT by Market Wire
SAN DIEGO--([ BUSINESS WIRE ])--Robbins Geller Rudman & Dowd LLP (aRobbins Gellera) ([ http://www.rgrdlaw.com/cases/longtop/ ]) today announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the Central District of California on behalf of purchasers of Longtop Financial Technologies Limited (aLongtopa) (NYSE:LFT) publicly traded securities during the period between May 15, 2009 and May 17, 2011 (the aClass Perioda).
"every financial statement from its IPO to this date is fraudulent."
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from May 23, 2011. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffa™s counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at [ djr@rgrdlaw.com ]. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at [ http://www.rgrdlaw.com/cases/longtop/ ]. Any member of the putative 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.
The complaint charges Longtop and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Longtop, together with its subsidiaries, provides a wide range of software solutions and services to financial institutions in the Peoplea™s Republic of China.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Companya™s financial and business prospects. As a result of defendantsa™ false statements, Longtop securities traded at artificially inflated prices during the Class Period, reaching a high of $42.73 per share on November 10, 2010.
On April 26, 2011, Citron Research (aCitrona) issued a report on Longtop stating aevery financial statement from its IPO to this date is fraudulent.a The report raised serious issues with the quality of the Companya™s earnings reports and operations and called into question the integrity of Longtopa™s key management, specifically pointing to undisclosed misdeeds involving past unfair business practices. In response, the price of Longtop shares fell, closing at $17.73 per share on April 27, 2011.
Following publication of the Citron report, Longtop hosted a conference call during which it denied every aspect of the report. Then on May 9, 2011, Citron published a follow-up report entitled aLongtop Financial (NYSE: LFT) Final Proof of Undisclosed Related Party Transactions.a In response to the release of the second Citron report, the price of Longtop stock fell 8.2%, or $1.67 per share to close at $18.54 per share on May 9, 2011.
On May 17, 2011, trading in Longtop stock was halted pending an announcement by the Company. At the time trading was suspended, Longtop stock was trading at $18.93 per share. On May 19, 2011, Longtop issued a press release announcing that the Company would not announce its fourth quarter and fiscal year 2011 financial results on May 23, 2011, as previously scheduled.
According to the complaint, the true facts, which were known by defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company misrepresented and overstated its financial condition and future business prospects; and (b) as a result of the foregoing, defendantsa™ statements regarding the Companya™s financial performance and expected earnings were false and misleading and lacked a reasonable basis when made.
Plaintiff seeks to recover damages on behalf of all purchasers of Longtop publicly traded securities during the Class Period (the aClassa). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller, a 180-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Robbins Geller Web site ([ http://www.rgrdlaw.com ]) has more information about the firm.
