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Harwood Feffer LLP Announces Investigation of Longtop Financial, Inc.

^{Published on 2011-09-06 21:41:00 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--Harwood Feffer LLP announces that it has commenced an investigation on behalf of purchasers of American Depository Shares (aADSa) of Longtop Financial, Inc. ("Longtop" or the "Company") (Pink Sheets: LGFTY) who purchased such ADS pursuant to a prospectus on Form 424B5 dated November 16, 2009 (the aProspectusa) and who currently hold such ADS.

On May 17, 2011, trading in the Company's stock was halted by the SEC after the Company announced that it was postponing the announcement of its quarterly and annual financial results originally scheduled for May 23, 2011. On May 23, 2011, the Company disclosed that its Chief Financial Officer Derek Palaschuk and outside auditor, Deloitte Touche Tohmatsu Ltd. ("Deloitte"), had both resigned. In its resignation letter dated May 22, 2011, Deloitte identified matters that may materially impact the fairness and reliability of Longtop's quarterly and annual financial information for prior period financial reports and Deloitte declined to be associated with any of the Company's financial communications in 2010 and 2011.

Deloitte explained in its letter that it was resigning as the result of, among other things: (1) the recently identified falsity of the Company's financial records in relation to cash at bank and loan balances (and possibly sales revenue); (2) the deliberate interference by certain members of Longtop management in Deloitte's audit process; and (3) the unlawful detention of Deloitte's audit files. Deloitte further stated that it could no longer rely on management's representations in relation to prior period financial reports, and that continued reliance should no longer be placed on Deloitte's audit reports on the previous financial statements.

The Company also announced on May 23, 2011 that the SEC had opened an investigation of related matters.

Harwood Feffer has been representing individual and institutional investors for many years, serving as lead counsel in numerous cases in federal and state courts. Please visit the Harwood Feffer LLP website ([ http://www.hfesq.com ]) for more information about the firm.

If you purchased Longtop ADS pursuant to the Prospectus and wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please see contacts below.

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