SOURCE: Dyer & Berens LLP

Dyer & Berens LLP

October 07, 2010 12:33 ET

Dyer & Berens LLP Announces Class Action on Behalf of Certain China Natural Gas, Inc. Investors; Reminds Investors of Upcoming Deadline (CHNG)

DENVER, CO--(Marketwire - October 7, 2010) -  Dyer & Berens LLP ( today encouraged investors who purchased or acquired China Natural Gas, Inc. (NASDAQ: CHNG) securities between March 10, 2010 and August 19, 2010, inclusive to consider whether to seek a "lead plaintiff" appointment in the securities class action pending in the United States District Court for the District of Delaware. If you wish to serve as a lead plaintiff, you must seek such an appointment no later than October 25, 2010

If you wish to discuss the class action lawsuit or have any questions concerning this notice or your rights or interests, please contact Jeffrey A. Berens, Esq., at (888) 300-3362 x302, (303) 861-1764, or via email at Any member of the putative class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Although an investor's ability to share in any recovery is not affected by their decision to seek appointment, lead plaintiffs make important decisions which could affect the overall recovery for class members.

The class action complaint charges that China Natural Gas and certain of its officers and executives violated federal securities laws. Specifically, defendants allegedly failed to disclose and properly account for a $17.7 million bank loan. This bank loan was secured by certain assets from the company's subsidiary who also guaranteed the repayment of the loan. This pledge of assets and guarantee of repayment were prohibited by an indenture for Senior Notes and Warrants of the company, placing China Natural Gas in default under the indenture. On August 13, 2010, after the close of the market, the company disclosed that management had identified various deficiencies in the company's internal controls over financial reporting and disclosure controls relating to the bank loan. As a result, the company's prior financial statements could not be relied upon and China Natural Gas would be restating its annual and quarterly reports. On this news and by August 24, 2010, shares of China Natural Gas had fallen 20% from the closing price on August 13, 2010.

Dyer & Berens LLP specializes in complex class action litigation on behalf of injured investors throughout the nation. The firm's extensive experience in securities litigation, particularly in cases brought under the Private Securities Litigation Reform Act, has contributed to the recovery of hundreds of millions of dollars for aggrieved investors. 

Contact Information

  • Contact:

    Jeffrey A. Berens
    Dyer & Berens LLP
    303 East 17th Avenue, Suite 300
    Denver, CO 80203
    Tel: (888) 300-3362 x302 or (303) 861-1764
    Email: Email Contact