SOURCE: AutoChina International Ltd.

AutoChina International Ltd.

June 23, 2014 08:30 ET

AutoChina International Announces Settlement With SEC

Company Pleased to Be Able to Move Forward With Focus on Growth Opportunities

SHIJIAZHUANG, CHINA--(Marketwired - Jun 23, 2014) - AutoChina International Limited ("AutoChina" or the "Company") (OTCBB: AUTCF), China's largest commercial vehicle sales, servicing, leasing, and support network, today announced that the Company has reached an agreement with the Securities and Exchange Commission ("SEC") to settle the lawsuit filed in April 2012 against AutoChina and 11 investors, which has been filed with the United States District Court of Massachusetts for approval.

Under the terms of the settlement, AutoChina, without admitting or denying wrongdoing, will pay a $4.35 million civil penalty to the SEC. The original lawsuit alleged that the Company, through an officer, engaged in a scheme to manipulate trading in the Company's shares to create the appearance of a liquid and active market. Mr. Hui Kai Yan, the Company's director and secretary, also a defendant in the lawsuit, agreed to pay a $150,000 civil penalty and agreed to no longer being an officer or director of a public company.

About AutoChina International Limited:
AutoChina International Limited is China's largest commercial vehicle sales, servicing, leasing, and support network. AutoChina's operating subsidiary was founded in 2005 by nationally recognized Chairman and CEO, Yong Hui Li. As of March 31, 2014, the Company owned and operated 549 commercial vehicle financing centers in 26 provinces across China, and primarily provides sales-type leasing and support services for local customers. The Company's website is http://www.autochinaintl.com.

Safe Harbor Statement:
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about the Company. Forward-looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of the Company's management, are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The following factors, among others, could cause actual results to meaningfully differ from those set forth in the forward-looking statements:

  • Continued compliance with government regulations;
  • Changing legislation or regulatory environments;
  • Requirements or changes affecting the businesses in which the Company is engaged;
  • Industry trends, including factors affecting supply and demand;
  • Labor and personnel relations;
  • Credit risks affecting the Company's revenue and profitability;
  • Changes in the commercial vehicle industry;
  • The Company's ability to effectively manage its growth, including implementing effective controls and procedures and attracting and retaining key management and personnel;
  • Changing interpretations of generally accepted accounting principles;
  • General economic conditions; and
  • Other relevant risks detailed in the Company's filings with the Securities and Exchange Commission.

The information set forth herein should be read in light of such risks. The Company does not assume any obligation to update the information contained in this press release.

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