NEW YORK, Aug. 22, 2014 /PRNewswire/ -- Pomerantz LLP has filed a class action lawsuit against China XD Plastics Company Ltd. ("China XD" or the "Company")(NASDAQ: CXDC) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 14-cv-5359, is on behalf of a class consisting of all persons or entities who purchased China XD securities between August 12, 2009 and July 10, 2014, inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased China XD securities during the Class Period, you have until September 15, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
China XD is a specialty chemical company that is engaged in the research, development, manufacture, and sale of modified and engineering plastics products primarily for use in the fabrication of automobile parts and components in the PRC. Its modified plastics are used to fabricate various auto components, including exteriors consisting of automobile bumpers, rearview and side view mirrors, and license plate parts; interiors, such as door panels, dashboards, steering wheels, glove compartments, and safety belt components; and functional components comprising air conditioner casings, heating and ventilation casings, engine covers, and air ducts. The Company also offers specially engineered plastics and environment-friendly plastics for use in oilfield equipment, mining equipment, vessel propulsion systems, and power station equipment.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, and failed to disclose material adverse facts about the Company's business, operations, prospects and performance. Specifically, during the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (i) China XD reports gross margins substantially higher than its main competitor, yet spends much less on research and development ("R&D"); (ii) China XD reported substantially higher revenues and net income in its SEC filings compared to filings made to the Chinese state regulatory authority known as the State Administration for Industry and Commerce ("SAIC") during the fiscal years 2008 through 2010; 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, the price of China XD common stock fell $1.17 (15%) to close at $6.48 on heavy trading volume after the release of an article by the research entity Bleeker Street Research on SeekingAlpha.com, which disclosed for the first time, among other things, that China XD reports gross margins substantially higher than its main competitor, yet spends much less on R&D, and China XD has reported higher revenues and net income in SEC filings compared to SAIC filings.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
SOURCE Pomerantz LLP