NEW YORK, Aug. 30, 2014 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in China XD Plastics Company Ltd. ("China XD Plastics" or the "Company") (NasdaqGM: CXDC) of the September 15, 2014 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against China XD Plastics and certain executives.
A complaint has been filed in the United States District Court of the Southern District of New York on behalf of all persons who purchased China XD Plastics common stock between August 12, 2009 and July 10, 2014, inclusive (the "Class Period").
The complaint alleges that the Company and its executives violated federal securities laws with respect to its disclosures concerning its business, operations, and prospects.
Specifically, the action alleges that during the Class Period, China XD Plastics made false and/or misleading statements and/or failed to disclose that: (i) Company reported gross margins that were considerably more than its main competitor although it spent far less on research and development ("R&D"); (ii) Company's SEC filings reported considerably higher revenues and net income during the fiscal years 2008 through 2010 than reports to State Administration for Industry and Commerce ("SAIC"), its Chinese state regulatory authority; and (iii) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On July 10, 2014, Bleeker Street Research published an article which disclosed that China XD Plastic's gross margins were considerably higher than its main competitors although it spends much less on R&D, and its SEC filings reported revenues and net income that were significantly higher than its SAIC filings.
On this news, the Company's shares fell $1.17 per share, to close at $6.48 per share, a one day drop of 15%, on high volume.
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If you invested in China XD Plastics stock or options between August 12, 2009 and July 10, 2014 and would like to discuss your legal rights, visit www.faruqilaw.com/CXDC. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding China XD Plastics' conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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