|[January 10, 2013]
Zeldes & Haeggquist LLP Announces Investigation of Longwei Petroleum Investment Holdings Limited
SAN DIEGO --(Business Wire)--
Zeldes & Haeggquist, LLP, a shareholder and consumer rights litigation
firm, has commenced an investigation into possible violations of the
federal securities laws by certain officers and directors at Longwei
Petroleum Investment Holding, Ltd. (NYSE MKT: LPH) ("Longwei" or the
If you purchased shares of Longwei stock between May 17, 2010 and
January 3, 2013, and would like additional information regarding this
investigation, or if you have information regarding the matters under
investigation, please contact attorney Amber Eck at 619-342-8000 or by
email at email@example.com.
Longwei, based in Shanxi, China, is an energy company which transports,
stores, and sells finished petroleum products in the People's Republic
of China ("PRC").
Zeldes & Haeggquist's investigation concerns allegations from a January
3, 2013 report published by th investment research firm GeoInvesting
titled "Longwei Petroleum: The Most Brazen China-Based U.S. Listed RTO
To Date." According to the article, Longwei inflated its November 2012
sales figures for its fuel depot storage facilities in Taiyuan and
Gujiao, China, and failed to disclose a $32 million related-party
investment in a tourism business made by Longwei Petroleum's subsidiary,
Shanxi Zhonghe Energy Conversion Co., Ltd. The article also alleges a
connection between Longwei and Puda Coal, Inc. (another China-based
company) which had two of its officers and directors charged with
securities fraud by the SEC (News - Alert).
Specifically, the investigation focuses on whether Longwei and its
officers and directors misrepresented or failed to disclose: (1) a
material related-party investment in a tourism business involving
Longwei's Chief Executive Officer ("CEO"); (2) that Longwei's CEO was a
minority owner of Longwei's subsidiaries; and (3) that Longwei's
wholesale fuel sales were greatly exaggerated.
On this news, Longwei's stock fell 73%, or $1.68, to close on January 3,
2013 at $0.62 on heavy trading volume. Since the announcement, trading
in Logwei common stock has been halted.
Zeldes & Haeggquist is a full-service law firm which brings major class
actions nationwide on behalf of defrauded investors and consumers and
handles a variety of complex business litigation matters. Please contact
Amber Eck at (619) 342-8000 or by email at firstname.lastname@example.org
for more information, or visit our website at www.zhlaw.com.
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