The Shareholders Foundation announces that an investor in shares of China Valves Technology, Inc. (OTCMKTS:CVVT) filed a lawsuit against directors of China Valves Technology.
Investors who purchased shares of China Valves Technology, Inc. (OTCMKTS:CVVT) and currently hold any of those OTCMKTS:CVVT shares have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 – 1554.
The plaintiff alleges that the China Valve Technology manipulated the stock price and then left the U.S.
China Valves Technology, Inc. reported that its annual Total Revenue rose from $66.56 million in 2008 to $183.70 million in 2010 and that its Net Loss of $4.24 million in 2008 turned into a Net Income of $43.20 million in 2010.
In February 2011 an investor in shares of China Valves Technology Inc (NASDAQ: CVVT) filed a lawsuit in the U.S. against China Valves Technology Inc for allegedly violating Federal Securities Laws in connection with certain false and misleading statements made between January 12, 2010 and January 13, 2011. More specifically, the plaintiff alleges on behalf of investors who purchased the common stock of China Valves Technology Inc (NASDAQ: CVVT) during the period from January 12, 2010 through January 13, 2011, that China Valves Technology Inc and its officers and directors violated the Securities Exchange Act of 1934 by misrepresenting the nature, circumstances, and related party nature of China Valves Technology Inc’s acquisitions of Able Delight (Changsha) Valve Co. and Shanghai Pudong Hanwei Valve Co., Ltd. The plaintiff claims that defendants concealed that both acquisitions involved payments to entities or persons that were related to management in violation of generally accepted accounting principles and SEC rules.
Furthermore the plaintiff also alleges that Defendants materially overstated the financial condition and business prospects of the acquired companies. China Valves Technology Inc reported an increase in its 12 months Total Revenue from $25.53 million in 2006 to $95.37 million in 2009. It reported an increased Net Income from $4.68 million in 2006 to $23.35 million in 2009. For the first three quarters in 2010 China Valves Technology Inc reported a combined nine months Total Revenue of $131.37 million, thus a combined nine months Total Revenue for 2010 that by far exceeds its 12 months Total Revenue of 2009. China Valves Technology Inc reported for the first three quarters in 2010 a combined nine months Net Income of $36.80, thus also exceeding its 12 months 2009 Net income with nine months Net Income in 2010.
Those who purchased shares of China Valves Technology, Inc. (OTCMKTS:CVVT), have certain options and should contact the Shareholders Foundation.
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