The Shareholders Foundation announces that an investor, who purchased shares of China Gerui Adv Mtals Grp Ltd (NASDAQ:CHOP), filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by China Gerui Advanced Materials Group Limited in connection with certain allegedly false and misleading statements made between January 11, 2012 and September 4, 2014.
Investors who purchased a significant amount of shares of China Gerui Adv Mtals Grp Ltd (NASDAQ:CHOP) between January 11, 2012 and September 4, 2014, have certain options and for certain investors are short and strict deadlines running. Deadline: January 30, 2015. NASDAQ:CHOP 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 c Adv Mtals Grp Ltd (NASDAQ:CHOP) common shares between January 11, 2012 and September 4, 2014, that the defendants violated Federal Securities Laws.
China Gerui Adv Mtals Grp Ltd reported that its annual Total Revenue declined from $341.78 million in 2011 to $165.83 million in 2013 and that its Net Income of $57.62 million in 2011 decreased to a Net Loss of $14.14 million in 2013.
According to the lawsuit, China Gerui Adv Mtals Grp Ltd issued materially false and misleading financial information to investors.
On September 4, 2014, China Gerui Adv Mtals Grp Ltd disclosed that prior to June 30, 2014 it had spent $234 million to acquire an antique porcelain collection, which it valued at approximately $905 million.
However, the plaintiff claims that in the years and months leading up to this announcement, China Gerui Adv Mtals Grp Ltdconsistently described its growth strategy to involve an expansion and diversification of its product lines, identification of overseas markets, and business combinations with competitors.
Shares of China Gerui Adv Mtals Grp Ltd (NASDAQ:CHOP) declined from under $0.90 per share in May 2014 to under $0.30 per share in late September 2014. On November 7, 2014, NASDAQ:CHOP shares split 1:10. On January 5, 2015, NASDAQ:CHOP shares closed at $1.75 per share or an equivalent of $0.175 per share prior to the split.
Those who purchased shares of China Gerui Adv Mtals Grp Ltd (NASDAQ:CHOP) have certain options and should contact the Shareholders Foundation.
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