SOURCE: Izard Nobel LLP

April 18, 2011 18:14 ET

Izard Nobel LLP Announces Class Action Lawsuit Against Puda Coal, Inc.

WEST HARTFORD, CT--(Marketwire - Apr 18, 2011) - The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed 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) between November 13, 2009 and April 11, 2011, inclusive (the "Class Period").

The Complaint charges Puda and certain of its officers and directors violated federal securities laws. Specifically, the Complaint alleges that defendants failed to disclose the following: (i) that, prior to the Class Period, certain of the individual defendants fraudulently transferred Puda's ownership interest to defendant Zhao; (ii) that Puda was nothing more than a shell company during the Class Period; (iii) that Puda's reported operating results and financial condition were materially overstated; (iv) that Puda's financial statements were not fairly presented in conformity with U.S. Generally Accepted Accounting Principles and were materially false; and (v) that Puda was operating with material deficiencies in its system of internal control over its financial reporting.

On April 11, 2011, Puda announced that its Audit Committee would investigate allegations raised on an investment website alleging various unauthorized transactions in the shares of a subsidiary company. Puda also announced that there was evidence to support the allegation that there were transfers in ownership that were inconsistent with disclosures in Puda's public filings.

If you are a member of the class, you may, no later than June 13, 2011, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit:, or contact Izard Nobel LLP toll-free: (800)797-5499, or by e-mail: For more information about class action cases in general, please visit our website:

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