NEW YORK, NY--(Marketwired - August 11, 2014) - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in China Commercial Credit, Inc. ("China Commercial" or the "Company") (NASDAQ: CCCR) of the October 6, 2014 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against China Commercial and certain executives and directors.
A complaint has been filed in the District of New Jersey on behalf of all persons who purchased China Commercial common stock between November 14, 2013 and July 25, 2014, inclusive (the "Class Period").
The complaint alleges that the Company and its executives violated federal securities laws with respect to its disclosures concerning its business, operations, and prospects.
Specifically, the action alleges that during the Class Period, China Commercial misled investors concerning the Company's involvement in risky loans and loan guarantee obligations. In a February 18, 2014 Forbes article, the CEO of China Commercial was quoted as stating that "[highly risky loans] among microcredit companies [in China] are not widespread." Later, on May 9, 2014, in a public offering, China Commercial sold 1,650,386 of its shares at $3.99 per share. In the prospectus, dated May 8, 2014, China Commercial represented that it estimated losses on its guarantee business to be 1% of the contract amount.
On July 25, 2014, the Company issued a press release stating that (i) it had paid out $5.4 million in loan guarantees in Q1 2014, and had recovered only $0.7 million in cash and $2.1 million in one-year notes payable by the borrowers; and (ii) it had paid out $3.7 million in guarantees in Q2 2014, of which it had only received $1.1 million in cash and $1.6 million in one-year notes payable by the borrowers.
Following this news, the price of China Commercial stock declined by $1.20, or 32%, to close on July 25, 2014 at $2.55 per share.
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If you invested in China Commercial stock between November 14, 2013 and July 25, 2014 and would like to discuss your legal rights, visit www.faruqilaw.com/CCCR. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding China Commercial's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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