China Natural Gas, Inc. (PINK:CHNG) Investor Files Class Action Lawsuit Against The Auditors Of China Natural Gas, Inc Over Alleged Securities Laws Violations
April 23, 2012 (Shareholders Foundation) -- An investor in PINK:CHNG shares filed a lawsuit in U.S. District Court for the Southern District of New York against Auditors of China Natural Gas, Inc over alleged violations of Federal Securities Laws in connection with certain financial statements.
According to the complaint the plaintiff alleges that on behalf of purchasers of the common stock of China Natural Gas, Inc. (PINK:CHNG) between March 10, 2010 and September 21, 2011, that as allegedly revealed through the restatements of China Natural Gas' 2009 and 2010 year-end financial statements, and its 2010 and 2011 interim financial statements, Frazer Frost, LLP and Friedman, LLP (the auditors of China Natural Gas’ financial statements between March 10, 2010 and September 21, 2011) allegedly materially misstated China Natural Gas’ financial position and materially misstated facts regarding related party and other transactions.
China Natural Gas, Inc faces a lawsuit filed in 2010 over alleged securities laws violations in during the period from March 10, 2010 through August 19, 2010. According to that complaint the plaintiff alleged by issuing false and misleading public statements in its Annual Report for the year ended December 31, 2009 and its Quarterly Report for the quarter ended March 31, 2010, specifically that the defendants concealed the existence of a $17.7 million loan liability on its balance sheet, understated restricted cash by $17.7 million, improperly accounted for $45.6 million in senior notes as short term liabilities, rather than long term, and failed to disclose that it is in default under the senior note indenture.
Shares of China Natural Gas, Inc. (formerly NASDAQ:CHNG) fell from $13.70 on October 16, 2009 to $2.54 on June 10, 2011.
On November 9, 2011, China Natural Gas said it received a letter from The NASDAQ Stock Market LLC in which among other things its Staff stated that it has determined to delist China Natural Gas’ securities.
Shares of China Natural Gas, Inc. (PINK:CHNG) closed on April 20, 2012 at $1.37 per share, roughly 10% of its value from October 2009.