The Shareholders Foundation announces that an investor, who purchased shares of China Finance Online Co. (ADR) (NASDAQ:JRJC), filed a lawsuit in the U.S. District Court for the Central District of California over alleged violations of Federal Securities Laws by China Finance Online Co. in connection with certain allegedly false and misleading statements made between May 6, 2014 and June 3, 2015.
Investors who purchased shares of China Finance Online Co. (ADR) (NASDAQ:JRJC) have certain options and for certain investors are short and strict deadlines running. Deadline: August 4, 2015. NASDAQ:JRJC investors should contact the Shareholders Foundation at mail@shareholdersfoundation or call +1(858) 779 – 1554.
According to the complaint the plaintiff alleges on behalf of purchasers of China Finance Online Co. (ADR) (NASDAQ:JRJC) common shares between May 6, 2014 and June 3, 2015, that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that between May 6, 2014 and June 3, 2015 defendants made allegedly false and/or misleading statements and/or allegedly failed to disclose that: China Finance Online’s Chairman of the Board of Directors and Chief Executive Officer Zhiwei Zhao had an indirect equity interest in Langfang Developer at the time of the Company’s investment, that Zhiwei Zhao suddenly resigned from his positions at three key Chinese Variable Interest Entities of China Finance Online, and that as a result of the foregoing, China Finance Online’s public statements were materially false and misleading at all relevant times
China Finance Online Co. reported that its annual Total Revenue rose from $29.60 million in 2012 to $83.70 million in 2014 and that its Net Loss of $46.62 million in 2012 declined to a Net Loss of $7.17 million in 2014.
On June 3, 2015, a report was published asserted among other things, that the most current SAIC records show Chairman and CEO Zhiwei Zhao suddenly resigned from his positions at three key Chinese VIE subsidiaries of China Finance Online Co. over the past few months, that Chinese media reports exposing the detention of China Finance Online Co. independent director Rongquan Leng prompted China Finance Online Co. to announce his resignation, without addressing his alleged detention;, and that Ling Wang, a former long-time China Finance Online Co. director and associate of Zhao, fled China in 2014, leaving his company indebted to China Finance Online Co. for $25 million.
On June 4, 2015, China Finance Online Co. responded to the allegations and said that the report contains numerous errors of facts, misleading speculations and malicious interpretations of events.
Those who purchased shares of China Finance Online Co. (ADR) (NASDAQ:JRJC) have certain options and should contact the Shareholders Foundation.
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