SOURCE: Brower Piven, A Professional Corporation

September 17, 2010 18:17 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $100,000 From Investment in China Natural Gas, Inc. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the October 25, 2010 Lead Plaintiff Deadline

STEVENSON, MD--(Marketwire - September 17, 2010) -  Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the District of Delaware on behalf of purchasers of the common stock of China Natural Gas, Inc. ("China Natural Gas" or the "Company") (NASDAQ: CHNG) during the period between March 10, 2010 and August 19, 2010, inclusive (the "Class Period").

The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period did not properly account for a February 26, 2010 bank loan of $17,676,000 from Pudong Development Bank Xi'an Branch ("Bank Loan") in its March 2010 Form 10-Q and the Company misclassified the Senior Notes issued to Abax pursuant to an indenture dated January 26, 2008 and the fair value of certain warrants as long term liabilities rather than short term liabilities. The complaint also alleges that given the size of the Bank Loan, which was over 20% of the Company's total revenues for 2009 and more than its total operating expenses for 2009, the Defendants knew or recklessly disregarded information about the Bank Loan and its terms prior to the issuance of the Company's 2009 Form 10-K and March 2010 Form 10-Q, and knowingly or in reckless disregard of that information caused the false and misleading 2009 Form 10-K and March 2010 Form 10-Q to be issued. According to the complaint, after the Company, on August 19, 2010, revealed that its financial for the year ended December 31, 2009 could not be relied upon and would have to be restated, the value of China Natural Gas stock declined significantly.

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than October 25, 2010 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff.

If you have suffered a net loss for all transactions in China Natural Gas, Inc. common stock during the Class Period, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 50 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Stevenson, Maryland
    410/415-6616
    Email Contact