The Shareholders Foundation announces that an investor, who purchased shares of China Commercial Credit Inc (NASDAQ:CCCR), filed a lawsuit in the U.S. District Court for the District of New Jersey over alleged violations of Federal Securities Laws by China Commercial Credit Inc in connection with certain allegedly false and misleading statements made between November 14, 2013 and July 25, 2014.
Investors who purchased shares China Commercial Credit Inc (NASDAQ:CCCR) have certain options and for certain investors are short and strict deadlines running. Deadline: October 6, 2014. NASDAQ:CCCR investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 – 1554.
According to the complaint 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.
China Commercial Credit Inc reported that its Net Income declined from $8.31 million in 2012 to $7.70 million in 2013.
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.
Shares of China Commercial Credit Inc (NASDAQ:CCCR) declined from $14.24 per share in August 2013, to $3.06 per share on June 24, 2014.
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 August 15, 2014, NASDAQ:CCCR shares closed at $3.28 per share.
Those who purchased shares of China Commercial Credit Inc (NASDAQ:CCCR) have certain options and should contact the Shareholders Foundation.
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