China Commercial Credit Inc (NASDAQ: CCCR) Investor Securities Class Action Lawsuit 08/06/2014

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Company Name(s): 
China Commercial Credit
Case Name: 
China Commercial Credit Shareholder Class Action Lawsuit 08/06/2014
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
NASDAQ: CCCR
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
08/06/2014
Class Period Begin: 
08/14/2013
Class Period End: 
07/25/2014
Court of Filing: 
U.S. District Court for the District of New Jersey
Deadline To File for Lead: 
10/06/2014
Date Settled: 
01/26/2017
Settlement Amount: 
$220,000
Deadline to Participate in Settlement: 
05/01/2017
Summary: 

The settlement amount consists of:
- $220,000 in cash
- 950,000 shares of freely tradeable CCCR common stock

January 26, 2017 - The court preliminarily approved the settlement.

January 11, 2017 - Parties filed a stipulation of settlement.

April 6, 2015 - The lead plaintiffs filed a second amended complaint on behalf of investors who purchased China Commercial Credit Inc (NASDAQ: CCCR) common shares between August 14, 2013 and July 25, 2014. The lead plaintiffs allege that the defendants violated the Securities Act of 1933 and the Securities Exchange Act of 1934 by issuing false and misleading statements between August 14, 2013 and July 25, 2014.

March 27, 2015 - The lead plaintiffs filed an amended complaint.

December 29, 2014 - The case was transferred to the U.S. District Court for the Southern District of New York.

October 31, 2014 - Lead plaintiffs and lead counsel were appointed and all cases were consolidated.

October 6, 2014 - Lead plaintiff motions were filed.

August 6, 2014 - An investor in shares of China Commercial Credit Inc (NASDAQ: CCCR) filed a lawsuit in the U.S. District Court for the District of New Jersey against China Commercial Credit Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between November 14, 2013 and July 25, 2014.

According to the complaint the plaintiff alleges on behalf of purchasers of China Commercial Credit Inc (NASDAQ: CCCR) common shares between November 14, 2013 and July 25, 2014, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that China Commercial Credit Inc mislead investors about its involvement in risky loans and loan guarantee obligations.

China Commercial Credit Inc reported that its Net Income declined from $8.31 million in 2012 to $7.70 million in 2013.

In a February 18, 2014 Forbes article, China Commercial Credit Inc's CEO was quoted as saying that "[highly risky loans] among microcredit companies [in China] are not widespread." On May 9, 2014, in a public offering, China Commercial Credit Inc sold 1,650,386 of its shares at $3.99 per share, with net proceeds to it of $6.14 million. In the prospectus, dated May 8, 2014, China Commercial Credit Inc represented that it estimates loss on its guarantee business to be about 1% of the contract amount.

Shares of China Commercial Credit Inc (NASDAQ: CCCR) declined from $14.24 per share in August 2013, to $3.06 per share on June 24, 2014.

Then on July 25, 2014, China Commercial Credit Inc announced that it had paid out $5.4 million in loan guarantees in Q1 2014, and had received only $0.7 million in cash and $2.1 million in one-year notes from the borrowers, and that it had paid out $3.7 million in guarantees in Q2 2014, of which it had only recovered $1.1 million, and converted $1.6 million of it to one-year notes.

Shares of China Commercial Credit Inc (NASDAQ: CCCR) declined from $3.86 per share on July 24, 2014, to $2.39 per share on July 25, 2014.

On August 8, 2014, China Commercial Credit Inc (NASDAQ: CCCR) shares closed at $2.99 per share.