Longtop Financial Technologies Ltd (ADR) under Investor Investigation

May 2, 2011 - PRLog -- An investigation on behalf of investors in shares of Longtop Financial Technologies Ltd (ADR)  over possible violations of Federal Securities Laws was announced.

If you purchased shares of Longtop Financial Technologies Ltd (ADR) , and/or if you have any information relating the investigation, you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The investigation by a law firm concerns whether any wrongdoing occurred at Longtop Financial Technologies Ltd (ADR) , including whether Longtop Financial Technologies Ltd (ADR) made false statements to the investing public.

Longtop Financial Technologies Ltd reported an increase in its 12months Total Revenue from $8.65million on March 31, 207 to a 12months Total Revenue of $169.06million reported on March 31, 2010. Its Net Income rose over the same time frame from $0.77million to $59.09million.

Shares of Longtop Financial Technologies Ltd (ADR) rose from as low as $11.99 in 2008 to over $40 in 2010. However LFT shares decreased from over $40 per share during Nov 2010 to recently under $23 per share.

On April 26, 2011, Citron Research published a report  raising certain concerns regarding Longtop Financial Technologies Ltd’s financial statements since its initial public offering in 2007. Among other things, the report highlights that in the fiscal year ended March 2010, Longtop Financial Technologies Ltd reported gross margins of 69% and non-GAAP operating margins of 49% compared to peers that “report gross margins between 15-50% and operating margins of 10-25% or even lower.” Among other things the report alleged Longtop Financial Technologies Ltd  failure to disclose in its prospectus past misdeeds by the Chairman and the Chief Executive Officer, and engaging in off balance sheet transactions that created outsized margins.
On April 27, 2011, Longtop Financial Technologies Ltd issued a press release announcing that it will release its financial results on May 23, 2011 for its fourth quarter and full year ended March 31, 2011. In the April 27, 2011 press release Longtop Financial Technologies Ltd stated, in part, the following:

“…Longtop states that its policy is not to comment on uusual market activity or rumors. In view of the unusual market activity in the stock of Longtop Financial Tech Limited, the NYSE has contacted the company in accordance with its usual practice; as a result of the market activity in the stock; the company has stated to the NYSE that its policy is not to comment on unusual market activity or rumors.”

Those who purchased Longtop Financial Technologies Ltd (ADR) (Public, NYSE-LFT), and/or those who have any information relating the investigation, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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