China North East Petroleum Holdings Ltd (OTC: CNEP) Investor Securities Class Action Lawsuit 12/31/2014

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Company Name(s): 
China North East Petroleum
Case Name: 
China North East Petroleum Shareholder Class Action Lawsuit 12/31/2014
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
OTCBB: CNEP
OTC: CNEP
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
12/31/2014
Class Period Begin: 
09/03/2010
Class Period End: 
03/14/2012
Court of Filing: 
U.S. District Court for the Central District of California
Deadline To File for Lead: 
03/02/2015
Date Settled: 
12/06/2016
Settlement Amount: 
$925,000
Deadline to Participate in Settlement: 
03/06/2017
Summary: 

August 7, 2017 - The court approved the settlement.

December 6, 2016 - The court preliminarily approved the settlement.

October 5, 2016 - Parties filed a stipulation of settlement.

March 24, 2016 - Defendants filed a motion to dismiss.

March 10, 2016 - The lead plaintiff filed a second amended complaint on behalf of investors who purchased China North East Petroleum Holdings Ltd (OTC: CNEP) common shares between September 3, 2010 and March 21, 2012. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between September 3, 2010 and March 21, 2012.

February 24, 2016 - The court granted defendants' motion to dismiss without prejudice.

December 14, 2015 - Defendants filed a motion to dismiss.

October 13, 2015 - The lead plaintiff filed an amended consolidated complaint.

April 6, 2015 - Lead plaintiff and lead counsel were appointed.

March 2, 2015 - Lead plaintiff motions were filed.

December 31, 2014 - An investor in shares of China North East Petroleum Holdings Ltd (OTC: CNEP) filed a lawsuit in the U.S. District Court for the Central District of California against Baker Tilly Hong Kong Ltd for their role as auditor of China North East Petroleum Holdings Ltd's financial statements that are alleged to have been false and misleading.

According to the complaint the plaintiff alleges on behalf of purchasers of China North East Petroleum Holdings Ltd (OTC: CNEP) common shares between January 1, 2010 and April 4, 2013, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that China North East Petroleum Holdings Ltd’s auditor Baker Tilly Hong Kong Ltd, fraudulently issued clean audit reports for China North East’s financial statements.

China North East Petroleum Holdings Ltd reported that its annual Total Revenue rose from $64.66 million in 2009 to $99.55 million in 2010 and that its Net Loss of $22.11 million in 2009 turned into a Net Income of $58.37 million in 2010.

China North East Petroleum Holdings Ltd announced on May 27, 2010, in an 8-K with the U.S. Securities and Exchange Commission (“SEC”) that its audit committee discovered improper cash transfers in 2009 between bank accounts of China North East Petroleum Holdings Ltd and the personal accounts of a certain China North East Petroleum Holdings Ltd officer and a China North East Petroleum Holdings Ltd director. China North East Petroleum Holdings Ltd’s CFO and a director have resigned. China North East Petroleum Holdings Ltd also announced that its CEO was placed on administrative leave and that he stepped down as Chairman of the Board, both pending the outcome of China North East Petroleum Holdings Ltd’s forensic audit. China North East Petroleum Holdings Ltd's stock price has dropped as a result of this adverse news.