San Diego, CA -- (SBWIRE) -- 05/05/2014 -- An investor, who purchased shares of Lihua International Inc (NASDAQ:LIWA), filed a lawsuit in the U.S. District Court for the Central District of California over alleged violations of Federal Securities Laws by Lihua International Inc in connection with certain allegedly false and misleading statements made between August 9, 2012 through April 30, 2014.
If you purchased shares of Lihua International Inc (NASDAQ:LIWA), you have certain options and for certain investors are short and strict deadlines running. Deadline: June 30, 2014. NASDAQ:LIWA investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of Lihua International Inc (NASDAQ:LIWA) between August 9, 2012 through April 30, 2014, that Lihua International Inc and certain of its officers and directors violated Federal Securities Laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
More specifically, the plaintiff alleges that Lihua International Inc 's business experienced a significant downturn starting from late 2012, that Lihua International Inc’s production activities slowed down dramatically in 2013, and have almost ceased after January 31, 2014, that Lihua International Inc’s warehouse has been seized by the local PRC court, and that Defendant Jianhua Zhu, Lihua's Chairman and CEO, attempted to move inventory in order to hide them from creditors, and is now being investigated by the police for larceny.
Lihua International Inc reported that its annual Total Revenue rose from $161.54 million in 2009 to $853.77 million in 2012 and that its respective Net Income increased from $13.73 million to $57.94 million.
In a recent report, allegations have been made that the Company's CEO and Chairman of the Company's Board may have diverted or attempted to divert Company assets. The report also alleges that the Company’s production has almost ceased and that local Chinese courts have seized the Company’s warehouse.
On April 30, 2014 Lihua International Inc said that the Board of Directors of Lihua International, Inc. is aware of a decline in the Company’s stock price and published allegations that Mr. Zhu Jianhua, the Company’s CEO and Chairman of the Company’s Board, may have diverted or attempted to divert Company assets and as a result may have been the subject of action by local law enforcement. Lihua International Inc said that although they have not yet been able to verify this information, the Board’s Audit Committee is taking steps to determine the facts and will take appropriate action and that if the allegations prove true, the Company’s financial statements may contain material misstatements.
Shares of Lihua International Inc (NASDAQ:LIWA) declined from $4.74 per share on April 29, 2014, to $2.08 per share on April 30, 2014.
Those who purchased shares of Lihua International Inc have certain options and should contact the Shareholders Foundation.
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