A proposed securities class action suit was recently filed against Pingtan Marine Enterprise, Ltd.
Securities class action suit filing
Pingtan Marine Enterprise, Ltd. is a China-based marine services operating company with securities that trade on the Nasdaq. The company provides seafood to the People's Republic of China, and gathers most of the food it supplies through ocean fishing taking place in the Indian Exclusive Economic Zone and the Arafura Sea of Indonesia.
The Rosen Law Firm announced on Nov. 24, 2014, that it had brought forth a proposed shareholder lawsuit to represent individuals and organizations that bought securities of Pingtan Marine between May 14, 2013 and Nov. 6, 2014. The law firm filed the legal claim in the U.S. District Court for the Central District of California.
Legal investigation
The securities class action suit was filed after the law firm conducted an inquiry, which investigated whether the company had provided the broader investing public with information that was materially misleading.
Earnings restatements
On Nov. 6, 2014, the seafood provider announced it would restate financial statements for multiple years and quarters. These included the years ending on Dec. 31, 2012, and Dec. 31, 2013, as well as three-month periods ending in June 2013 and June 2014.
The company revealed the restatement would make clear up certain disclosures, shed further light on 20 fishing vessels the firm leased from another entity and also provide other miscellaneous adjustments.
The securities class action suit claimed that company shares declined sharply once the global markets responded to this information, and the depreciation hurt the holdings of investors. In addition, the lawsuit alleged the seafood provider did not provide sufficient information about the material related-party transactions that caused the pertinent financial statements to be materially false and misleading.
The Rosen Law Firm filed the proposed securities class action suit with the objective of recovering damages for eligible shareholders of Pingtan Marine under federal securities laws.
Status of legal claim
The law firm reminded investors that a class has not yet been certified in the legal claim, and that until the court system appoints a class, eligible investors are not represented by legal counsel unless they decide to obtain such services.
The Rosen Law Firm also indicated that if eligible investors want to serve as lead plaintiff in the securities class action suit, they have until Jan. 23, 2015, to move the court.