Puda Coal, Inc Investor Lawsuit Deadline on June 13 2011

June 6, 2011 - PRLog -- The Shareholders Foundation announces that a deadline is coming up on June 13, 2011 in the lawsuit for investors in Puda Coal, Inc  over alleged Securities Laws violations.

Investors with a large financial loss in PUDA shares should act and become actively involved before the deadline on June 13, 2011.

If you purchased shares of Puda Coal, Inc  between November 13, 2009 and April 11, 2011 and if you suffered a substantial financial loss, you have certain options and there are strict and short deadlines running. Deadline: June 13, 2011. Those PUDA stockholders should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

After PUDA stock dropped 50% stock drop within a few days and trading was halted an investor in Puda Coal, Inc (Public, NYSE-PUDA) filed a lawsuit in in the United States District Court for the Southern District of New York against Puda Coal Inc and certain of its officers and executives. According to the complaint the plaintiff alleges on behalf of purchasers of the common stock of Puda Coal, Inc.  between November 13, 2009 and April 11, 2011, that Puda and certain of its officers and executives violated the Securities Exchange Act of 1934 by failing to disclose material adverse facts about its true financial condition, business and prospects.

PUDA shares fell from over $12 at the end of March 2011 to $6 per share on April 8 when a report surfaced on an investor website the same day alleging that “Puda Coal Chairman secretly sold half the Company and pledges the other half to Chinese PE investors.”

According to the report certain company transfers were hidden from its U.S. investors that were not reported in its SEC filings or offering documents.

The report said that beginning in Fall 2009 Puda Coal Chairman Ming Zhao allegedly transferred Shaxi Coal, Puda’s sole Chinese operating subsidiary, to himself through a series of transactions. The report states that in July 2010, Zhao sold 49% of his interest in Shanxi Coal to a private equity firm for RMB245 million ($37.1 million) and pocketed the proceeds. Zhao’s remaining 51% interest was pledged as security so the Company could obtain a three year loan from the private equity firm for RMB 2.5 billion ($379 million). The report states that Zhao attempted to secretly return a portion of Shanxi Coal to its rightful owner by transferring his remaining interest to subsidiaries controlled by the Company. As a result of these transactions, the report concludes the Company’s audited financial statements for 2009 and 2010 are false and misleading and that Puda Coal is alleged to have been an empty shell. On April 8, 2011 Puda Coal said it was reviewing them and would provide a formal response as soon as practicable.
On April 11, 2011, Puda Coal issued a further statement that the Audit Committee of its Board of Directors had launched a full investigation into the allegations raised in the recent article. Although the investigation is only in its preliminary stages Puda Coal said that “evidence supports the allegation that there were transfers by Mr. Zhao in subsidiary ownership that were inconsistent with disclosure made by the Company in its public securities filings.” Further the Company said it has retained professionals in the United States and China to assist in the investigation and that Mr. Zhao, the Chairman of Puda Coal, has agreed to a voluntary leave of absence as Chairman of the Board until the investigation is complete.

The New York Stock Exchange has halted trading in Puda Coal’s stock.

Those who purchased shares of Puda Coal, Inc (Public, NYSE-PUDA) between November 13, 2009 and April 11, 2011 and suffered a substantial financial loss, you have certain options and there are strict and short deadlines running. Deadline: June 13, 2011. Those PUDA stockholders should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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The Shareholders Foundation, Inc. is a professional portfolio monitoring service and an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We believe that together we can combine the interests of many investors, and use the size of our interest as leverage against the giant corporations. We offer help, support, and assistance for every shareholder. We help investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.