The Shareholders Foundation announces that a deadline is coming up on October 6, 2014 in the lawsuit filed for investors of China Commercial Credit Inc (NASDAQ:CCCR) over alleged securities laws violations by China Commercial Credit Inc.
Investors who purchased shares of China Commercial Credit Inc (NASDAQ:CCCR) have certain options and there are strict and short deadlines running. Deadline: October 6, 2014. China Commercial Credit Inc (NASDAQ:CCCR) stockholders should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 – 1554.
According to the complaint filed in the U.S. District Court for the District of New Jersey the plaintiff alleges on behalf of purchasers of China Commercial Credit Inc (NASDAQ:CCCR) common shares between November 14, 2013 and July 25, 2014, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that China Commercial Credit Inc mislead investors about its involvement in risky loans and loan guarantee obligations.
In a February 18, 2014 Forbes article, China Commercial Credit Inc’s CEO was quoted as saying that “[highly risky loans] among microcredit companies [in China] are not widespread.” On May 9, 2014, in a public offering, China Commercial Credit Inc sold 1,650,386 of its shares at $3.99 per share, with net proceeds to it of $6.14 million. In the prospectus, dated May 8, 2014, China Commercial Credit Inc represented that it estimates loss on its guarantee business to be about 1% of the contract amount.
Then on July 25, 2014, China Commercial Credit Inc announced that it had paid out $5.4 million in loan guarantees in Q1 2014, and had received only $0.7 million in cash and $2.1 million in one-year notes from the borrowers, and that it had paid out $3.7 million in guarantees in Q2 2014, of which it had only recovered $1.1 million, and converted $1.6 million of it to one-year notes
Shares of China Commercial Credit Inc declined from $3.86 per share on July 24, 2014, to $2.39 per share on July 25, 2014.
On September 12, 2014, NASDAQ:CCCR shares closed at $2.98 per share.
Those who purchased shares of China Commercial Credit Inc (NASDAQ:CCCR) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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