SOURCE: Saxena White P.A.

Saxena White P.A.

April 22, 2011 23:58 ET

Saxena White P.A. Files a Securities Fraud Class Action Against Puda Coal, Inc.

BOCA RATON, FL--(Marketwire - Apr 22, 2011) - Saxena White P.A. announces that it has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of investors who purchased Puda Coal, Inc. ("Puda" or the "Company") (NASDAQ: PUDA) common stock. The current class period is September 15, 2009 through April 11, 2011, inclusive (the "Class Period").

The Complaint charges Puda and certain of the Company's executive officers with violations of federal securities laws. Puda, through its indirect equity ownership in Shanxi Puda Coal Group Co., Ltd. ("SPCG"), its sole operating subsidiary, supplies metallurgical coking coal to the industrial sector in the People's Republic of China. The Complaint alleges that throughout the Class Period Defendants misrepresented and/or failed to disclose, among other things: (1) that the Company's Chairman, Ming Zhao ("Zhao"), had transferred ownership/shares of SPCG to himself through a series of transactions; (2) that Zhao had sold 49% of SPCG; (3) that, as a result, Puda did not possess the ownership interests in SPCG that the Company claimed to possess; (4) that the Company lacked adequate internal and financial controls; and (5) that, as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.

On April 8, 2011, an investor website published a research report alleging that through a series of transactions beginning in September 2009, Zhao improperly transferred SPCG to himself; in July 2010 sold 49% of the interest in SPCG for RMB245 million ($37.1 million), and later pledged the remaining 51% interest in the SPCG as collateral for a three year loan for RMB 2.5 billion ($379 million).

As a result of this news, the Company's shares declined $3.10 per share, or nearly 33%, to close on April 8, 2011, at $6.00 per share, on unusually heavy trading volume. Trading of the Company's shares was subsequently halted.

You may obtain a copy of the complaint and join the class action at www.saxenawhite.com. If you purchased the common stock of Puda between the period of September 15, 2009 and April 11, 2011, inclusive, or on the Secondary Offerings dated February 11, 2010 or December 8, 2010, you may contact Joe White or Greg Stone at Saxena White P.A. to discuss your rights and interests.

If you purchased Puda Coal shares during the Class Period and/or on the Secondary Offerings and wish to apply to be the lead plaintiff in this action, a motion on your behalf must be filed with the Court no later than June 13, 2011. You may contact Saxena White P.A. to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. Please note that you may also retain counsel of your choice and need not take any action at this time to be a class member.

Saxena White P.A., which has offices in Boca Raton, Boston and Montana, specializes in prosecuting securities fraud and complex class actions on behalf of institutions and individuals. Currently serving as lead counsel in numerous securities fraud class actions nationwide, the firm has recovered hundreds of millions of dollars on behalf of injured investors and is active in major litigation pending in federal and state courts throughout the United States.

Contact Information