SOURCE: Brower Piven, A Professional Corporation

April 26, 2011 17:49 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $250,000 From Investment in Puda Coal, Inc. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the June 13, 2011 Lead Plaintiff Deadline

STEVENSON, MD--(Marketwire - Apr 26, 2011) - Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of Puda Coal, Inc. ("Puda" or the "Company") (NYSE Amex: PUDA) during the period between November 13, 2009 and April 11, 2011, inclusive (the "Class Period") including investors who purchased Puda Coal common stock in the Company's December 8, 2010 public offering of common stock.

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 June 13, 2011 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.

The complaint accuses the defendants of violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period material adverse facts about the Company's business, operations, prospects and performance and the wrongful transfers of ownership of company assets to its Chairman. According to the complaint, after, on April 8, 2011, Puda issued a press release announcing that it was reviewing allegations regarding improper share transactions by defendant Ming Zhao, after a report was published alleging that Puda's chairman had secretly sold half the Company and pledged the other half to Chinese investors, and after Puda, on April 11, 2011, announced that it had unanimously ratified the Audit Committee's decision to launch a full investigation into these allegations as well as allegations that there were transfers by Chairman Zhao in subsidiary ownership that were inconsistent with disclosure made by the Company in its public securities filings, trading on the AMEX in the Company's shares was halted.

If you have suffered a net loss for all transactions in Puda Coal, 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 60 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