A deadline is coming up on May 13, 2016 in the settlement reached in the securities class action lawsuit filed for investors in AMEX: PUDA shares between December 8, 2010 and April 11, 2011.
Investors who purchased a significant amount of shares of Puda Coal Inc (AMEX: PUDA) between December 8, 2010 and April 11, 2011, have certain options and should contact the Shareholders Foundation by email at firstname.lastname@example.org or call +1(858) 779 – 1554.
The settlement proof of claim form or detailed settlement notice for the settlement in the Puda Coal Inc (AMEX: PUDA) Investor Securities Class Action Lawsuit can be downloaded at: http://shareholdersfoundation.com/case/puda-coal-inc-amex-puda-investor-securities-class-action-lawsuit-04142011
In order to submit a claim an investor has to submit the claim proof to the class action claim administrator in a timely manner. The deadline to submit the proof with the class administrator is May 13, 2016. The class action administrator for this case is Macquarie Capital Fair Fund / Puda Coal.
The lawsuit was originally filed in the U.S. District Court for the Southern District of New York against Puda Coal Inc and certain of its officers and executives over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between November 13, 2009 and April 11, 2011. According to the complaint the plaintiff alleges on behalf of purchasers of the common stock of Puda Coal Inc. (AMEX: PUDA) between November 13, 2009 and April 11, 2011, that Puda coal Inc and certain of its officers and executives violated the Securities Exchange Act of 1934 by failing to disclose material adverse facts about its true financial condition, business and prospects. PUDA shares fell from over $12 at the end of March 2011 to $6 per share on April 8 when a report surfaced on an investor website the same day alleging that “Puda Coal Chairman secretly sold half the Company and pledges the other half to Chinese PE investors.”
According to the report certain company transfers were hidden from its U.S. investors that were not reported in its SEC filings or offering documents.
The report said that beginning in Fall 2009 Puda Coal Inc Chairman Ming Zhao allegedly transferred Shaxi Coal, Puda’s sole Chinese operating subsidiary, to himself through a series of transactions. The report states that in July 2010, Zhao sold 49% of his interest in Shanxi Coal to a private equity firm for RMB245 million ($37.1 million) and pocketed the proceeds. Zhao’s remaining 51% interest was pledged as security so the company could obtain a three year loan from the private equity firm for RMB 2.5 billion ($379 million). The report states that Zhao attempted to secretly return a portion of Shanxi Coal to its rightful owner by transferring his remaining interest to subsidiaries controlled by the company. As a result of these transactions, the report concludes the company’s audited financial statements for 2009 and 2010 are false and misleading and that Puda Coal is alleged to have been an empty shell. On April 8, 2011 Puda Coal said it was reviewing them and would provide a formal response as soon as practicable.
On April 11, 2011, Puda Coal Inc issued a further statement that the Audit Committee of its Board of Directors had launched a full investigation into the allegations raised in the recent article. Although the investigation is only in its preliminary stages Puda Coal said that “evidence supports the allegation that there were transfers by Mr. Zhao in subsidiary ownership that were inconsistent with disclosure made by the Company in its public securities filings.” Further the company said it has retained professionals in the United States and China to assist in the investigation and that Mr. Zhao, the Chairman of Puda Coal Inc, has agreed to a voluntary leave of absence as Chairman of the Board until the investigation is complete.
Those who purchased AMEX: PUDA shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North – Suite 423
92108 San Diego