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.
Request more information now by clicking here:
www.faruqilaw.com/CXDC. There is no cost or obligation to
you.
Take Action
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
rgonnello@faruqilaw.com. Faruqi & Faruqi, LLP also
encourages anyone with information regarding China XD Plastics'
conduct to contact the firm, including whistleblowers, former
employees, shareholders and others.
Faruqi & Faruqi, LLP is a national law firm which represents
investors and individuals in class action litigation. The
firm is focused on providing exemplary legal services in complex
litigation in the areas of securities, shareholder, antitrust and
consumer litigation, throughout all phases of litigation. The
firm has an experienced trial team which has achieved significant
victories on behalf of the firm's clients. To keep track of the
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FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Richard Gonnello,
Esq.
rgonnello@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
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