Qiao Xing Universal Resources, Inc. (NASDAQ:XING) Investor Files Class Action Lawsuit Over Alleged Securities Laws Violations
April 30, 2012 (Shareholders Foundation) -- An investor in NASDAQ:XING shares filed a lawsuit in the U.S. District Court of the Virgin Islands against Qiao Xing Universal Resources, Inc. over alleged Violations of U.S. Federal Securities Laws in connection with certain statements.
According to the complaint the plaintiff alleges on on behalf of investors who purchased the stock of Qiao Xing Universal Resources, Inc. (NASDAQ: XING) between July 15, 2011 and April 16, 2012, that Qiao Xing Universal Resources, Inc. and certain of its present and former officers and directors violated that Securities Exchange Act of 1934 by issuing allegedly false and misleading information to investors. Specifically, the plaintiff claims that defendants failed to disclose that in June 2011 the Company’s then CEO and Chairman Rui Lin Wu transferred Company funds to a bank account under his control.
NASDAQ has suspended trading in XING’s stock as of April 16, 2012 and on April 20, 2012, Qiao Xing Universal Resources, Inc announced the commencement of an internal investigation by the Company's audit committee concerning a transfer of funds from a Company subsidiary's bank account to an account controlled by the Company's former Chairman, Wu Rui Lin, in June 2011. The Company also announced it would also be reviewing certain transactions involving the pledge or transfer of Company assets and to confirm cash balances of the Company's bank accounts.