A law office recently noted that it filed a securities class action lawsuit against a plastics manufacturer due to potential federal securities law violations.
The Rosen Law Firm explained that it filed the litigation in the U.S. District Court for the Southern District of New York against China XD Plastics Company, Ltd. This includes all shareholders who acquired stock in the company during the class period between Aug. 12, 2009 and July 10, 2014.
Allegations in the lawsuit include China XD Plastics' leaders potentially overstating the company's revenue and income for its quarterly and annual financial reports. A report from Bleecker Street Research was released in July 2014 that noted the company's income was lower than previously thought, which hurt the company's stock price.
There is the option for shareholders to apply for the lead plaintiff position in the case, but they need to file the application with the court by Sept. 15, 2014. This is not a mandatory position, and shareholders still have the ability to remain as absent class members and take no action. This will allow shareholders to still collect in the event of a financial return.
For those who would like to learn more about the lawsuit, the lead plaintiff position or how the situation may affect their rights and interests, speaking with the law office is an option. Both Kevin Chan and Phillip Kim can be reached by telephone or email, while the law office's website has further details.
Separate investigation begins
Another law firm noted that it started to investigate the leaders at China XD Plastics for many of the aforementioned reasons. There is also a possibility that this will become a class action lawsuit.
Law office Andrews and Springer, LLC, noted that the investigation will begin due to the company's alleged income inflation in its financial documentation. When this, as well as other information was released about the company, its stock slipped 15 percent, and on July 9, 2014, it had a closing price of $7.65 percent.
Shareholders have the ability to speak with the law office to learn more about the case. The best person to speak with is Craig Springer, and he can be reached by telephone or email. Additionally, the law office's website has more information for interested shareholders.