Keyuan Petrochemicals, Inc. hit by Investor Lawsuit over alleged Securities Laws Violations

Dec. 6, 2011 - PRLog -- An investor in Keyuan Petrochemicals, Inc.  filed a lawsuit in the U.S. District Court for the Central District of California against Keyuan Petrochemicals, Inc over alleged Violations of Federal Securities Laws.

If you purchased shares of Keyuan Petrochemicals, Inc.  between August 16, 2010 through October 7, 2011, you have certain options and there are strict and short deadlines running. Deadline: Jan. 16, 2012. NASDAQ-KEYP stockholders should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

According to the complaint the plaintiff alleges on behalf of investors who purchased the common stock Keyuan Petrochemicals, Inc. during the period from August 16, 2010 through October 7, 2011, that Keyuan Petrochemicals and certain of its officers and directors violated Federal Securities Laws by issuing materially false and misleading financial information.
While Keyuan Petrochemicals, Inc. did not report any significant Total Revenue between 2006 and 2009 Keyuan Petrochemicals, Inc. reported for the first three quarters in 2010 a combined nine months Total Revenue of $400.71million with a combined nine months Net Income of $18.54million.

Specifically, the plaintiff claims that between August 16, 2010 and October 7, 2011 Keyuan Petrochemicals, Inc  failed to properly disclose material related party transactions that rendered Keyuan Petrochemicals' periodic reports filed with the U.S. Securities and Exchange Commission (“SEC”) false and misleading.

Prior to market open on April 1, 2011 trading in Keyuan Petrochemicals’ stock was halted. Thereafter, Keyuan Petrochemicals issued a press release announcing that it would not be able to timely release its financial results for the fiscal year ended December 31, 2010. The announcement also revealed that “the accounting review conducted to date had identified various concerns” that prompted the Company’s audit committee to undertake an independent investigation.  Later the same day, Keyuan Petrochemicals filed an 8-K with the U.S. Securities and Exchange Commission (“SEC”) under item 4.02 entitled “Non-Reliance on Previously Issued Financial Statements.” According to the 8-K, Keyuan Petrochemicals’ auditors informed Keyuan Petrochemicals “that there is a possibility that we may be required to make certain adjustments to certain of our previously issued financial statements, and that such previously issued financial statements may not be relied upon.

Then on October 6, Keyuan Petrochemicals said on October 5, 2011, it received a letter from the Listing Qualifications Hearings Department of the NASDAQ Stock Market LLC stating that the NASDAQ Stock Market LLC Hearings Panel has exercised its discretionary authority pursuant to NASDAQ Listing Rule 5101 to delist the Company’s securities from the Nasdaq Stock Market and will suspend trading in the Company’s shares effective at the open of business on Friday, October 7, 2011.

Keyuan Petrochemicals said that this will terminate the trading halt imposed by NASDAQ and will result in the Keyuan Petrochemicals’ shares trading on the over-the-counter market.

Those who purchased shares of Keyuan Petrochemicals, Inc.  between August 16, 2010 through October 7, 2011, you have certain options and there are strict and short deadlines running. Deadline: Jan. 16, 2012. NASDAQ-KEYP 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 and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. 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.