NEW YORK, June 26, 2015 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against China Finance Online Co. Limited ("China Finance Online" or the "Company")JRJC and certain of its officers. The class action, filed in United States District Court, Central District of California, is on behalf of a class consisting of all persons or entities who purchased China Finance Online securities between May 6, 2014 and June 3, 2015 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 Finance Online securities during the Class Period, you have until August 4, 2015 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 rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
China Finance Online provides Web-based financial services in the People's Republic of China and Hong Kong. The company operates through three segments: Precious Metals Trading Services; Online Financial Information and Advisory Service, and Other Related Services; and Hong Kong Brokerage Services. It provides online access to securities and commodities trading services, wealth management products, and securities investment advisory services to retail investors; and financial database and analytics to institutional investors, including financial, research, academic, and regulatory institutions.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) China Finance Online's Chairman of the Board of Directors and Chief Executive Officer Zhiwei Zhao ("Zhao") had an indirect equity interest in Langfang Developer at the time of the Company's investment; (2) Zhao suddenly resigned from his positions at three key Chinese Variable Interest Entities of China Finance Online; and (3) as a result of the foregoing, the Company's public statements were materially false and misleading at all relevant times.
On June 3, 2015, a report published by GeoInvesting, LLC asserted among other things, that: (1) the most current SAIC records show Chairman and CEO Zhiwei Zhao suddenly resigned from his positions at three key Chinese VIE subsidiaries of JRJC over the past few months; (2) Chinese media reports stating that the detention of JRJC independent director Rongquan Leng prompted JRJC to announce his resignation, without addressing his alleged detention; and (3) Ling Wang, a former long-time JRJC director and associate of Zhao, fled China in 2014, leaving his company indebted to JRJC for $25 million.
On this news, shares of China Finance fell $0.46 per share, to $5.49, or more than 7.68%, on June 3, 2015.
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.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
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SOURCE Pomerantz LLP
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