SOURCE: Bronstein, Gewirtz & Grossman, LLC

May 11, 2011 13:57 ET

Bronstein, Gewirtz & Grossman, LLC Announces Class Action Lawsuit Against Fushi Copperweld, Inc.

NEW YORK, NY--(Marketwire - May 11, 2011) - Bronstein, Gewirtz & Grossman, LLC announces that a class action has been filed in the United States District Court for the Southern District of New York on behalf of those who purchased or otherwise acquired stock of Fushi Copperweld, Inc. ("Fushi" or the "Company") (NASDAQ: FSIN) during the period between August 14, 2007 through and including March 29, 2011 (the "Class Period").

The Complaint was filed against Fushi over alleged violations of Federal Securities Laws. On March 11, 2011, Fushi released a statement that said, "[t]he Company... is currently reevaluating the application of generally accepted accounting principles ("GAAP") in certain accounting treatments applied to its 2007, 2008, and 2009 financial results as well as it previously filed quarterly financial statements for the first three quarters of 2010. These accounting treatments are related to the ability to realize deferred income tax assets, qualification of cash flow hedge for cross-currency interest swap, and bargain purchase gains recognized in 2010 acquisitions." On this news, the Fushi stock dropped $0.74 per share, nearly 8%, to close at $8.68. Over the next few days the stock continued to decline by an additional $0.94 to close at $7.74 on March 16, 2010.

Then on March 29, 2011, the company disclosed that previously issued financial statements for the years ended December 31, 2007, December 31, 2008, and December 31, 2009 and its unaudited interim financial statements for the quarters ended March 31, 2010, June 30, 2010, and September 30, 2010 should no longer be relied upon and should be restated.

Fushi shares fell from almost $10 in the beginning of March to under $8 during April 2011.

No Class has yet been certified in the above action. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact either Peretz Bronstein or Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email eitan@bgandg.com. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. July 5, 2011 is the deadline for investors to seek a lead plaintiff appointment.

Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate work, private securities offerings, and securities arbitration.

Contact Information

  • Peretz Bronstein
    Eitan Kimelman
    Bronstein, Gewirtz & Grossman, LLC
    212-697-6484
    Email Contact