Posted by Trevor Allen
Monday, 12 September 2011
An investigation for investors in Longtop Financial Technologies Ltd (ADR) (NYSE:LFT) who purchased their LFT shares on or shortly after November 18, 2009 was announced and those NYSE:LFT stockholders should contact the Shareholders Foundation by email at mail@shareholdersfoundation.comThis e-mail address is being protected from spam bots, you need JavaScript enabled to view it
An investigation on behalf of investors in Longtop Financial Technologies Ltd (ADR) (NYSE:LFT), who purchased their shares on or shortly after November 18, 2009 over possible Securities Laws Violations was announced.
If you purchased shares of Longtop Financial Technologies Ltd (ADR) (NYSE:LFT) on or after November 18, 2009, you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.comThis e-mail address is being protected from spam bots, you need JavaScript enabled to view it or call +1(858) 779 - 1554.
The investigation by a law firm for investors who purchased their LFT stocks on or after November 18, 2009 focuses on possible securities laws violations. A lawsuit is already pending in the U.S. District Court for the Central District of California for investors in Longtop Financial Technologies Ltd (ADR) (NYSE:LFT), who between June 29, 2009 and April 25, 2011. According to that complaint the plaintiff alleges that Financial Technologies Ltd and certain of its officers and directors violated Federal Securities Laws by issuing materially false and misleading financial statements to the investing public between June 29, 2009 and April 25, 2011.
On April 26, 2011, Citron Research published a report raising certain concerns regarding Longtop Financial Technologies Ltd抯 financial statements since its initial public offering in 2007. Among other things, the report highlights that in the fiscal year ended March 2010, Longtop Financial Technologies Ltd reported gross margins of 69% and non-GAAP operating margins of 49% compared to peers that 搑eport gross margins between 15-50% and operating margins of 10-25% or even lower Among other things the report alleged Longtop Financial Technologies Ltd failure to disclose in its prospectus past misdeeds by the Chairman and the Chief Executive Officer, and engaging in off balance sheet transactions that created outsized margins.
On May 10, 2011, Longtop Financial Technologies Limited issued a statement in response to a second research report published by OLP Global. Longtop Financial Technologies Ltd. said the report claimed, among other things, that Longtop Financial Technologies and a Xiamen-based HR company, Xiamen Longtop Human Resource Service Co. Ltd. (XLHRS), are related parties, that Longtop Financial Technologies under-contributed employee benefits, and that it conducted questionable acquisitions. Longtop Financial Technologies said its management refutes these allegations, and, in view of similarly specious allegations published by Citron Research on May 9, 2011, wishes to express concern that Longtop Financial Technologies appears to be a target of efforts to attack the integrity of its business and its financial statements as the time for the announcement of its fiscal 2011 earnings approaches.
On May 17, 2011, trading in Longtop Financial Technologies' stock was halted.
Then on May 23, 2011, Longtop Financial Technologies announced in a press release that its Chief Financial Officer Derek Palaschuk and outside auditor, Deloitte Touche Tohmatsu Ltd. ("Deloitte"), had both resigned. In its resignation letter dated May 22, 2011, Deloitte identified matters that may materially impact the fairness and reliability of Longtop's quarterly and annual financial information for prior period financial reports and Deloitte declined to be associated with any of the Company's financial communications in 2010 and 2011.
On August 16, 2011, the New York Stock Exchange said in statement that it will delist the the American depository shares of Longtop Financial Technologies Ltd and the ADRs will be suspended prior to the opening of trade on Wednesday. Since then American depository shares of Longtop Financial Technologies Ltd are traded under Longtop Financial Technologies Ltd. (PINKSHEETS: LGFTY).
On August 29, 2011, Longtop Financial Technologies Limited disclosed that it received a 揥ells Notice攄ated August 19, 2011 from the staff of the United States Securities and Exchange Commission (揝EC? on August 24, 2011. The Wells Notice states that the staff intends to recommend that the SEC take legal action against the Company alleging that the Company violated Section 13(a) of the Securities Exchange Act of 1934 and Rule 13a-1 thereunder .
Those who purchased shares of Longtop Financial Technologies Ltd (ADR) (NYSE:LFT) on or after November 18, 2009, you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.comThis e-mail address is being protected from spam bots, you need JavaScript enabled to view it or call +1(858) 779 ?1554.
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.comThis e-mail address is being protected from spam bots, you need JavaScript enabled to view it
www.ShareholdersFoundation.com
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The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We offer help, support, and assistance for every shareholder. We help investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
Source:pr-canada