SOURCE: Saxena White P.A.

Saxena White P.A.

March 09, 2011 16:00 ET

Saxena White P.A. Files Securities Fraud Class Action Against China Valves Technology Inc.

BOCA RATON, FL--(Marketwire - March 9, 2011) - Saxena White P.A. has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of all investors who purchased China Valves Technology Inc. ("China Valves" or the "Company") (NASDAQ: CVVT) securities during the period between January 12, 2010 and January 13, 2011 inclusive (the "Class Period"), seeking to recover damages caused by defendants' violations of the federal securities laws.

China Valves develops, manufactures and markets metal valves for customers in the electricity, petroleum, chemical, water, gas, nuclear power station and metal industries in China. The Complaint alleges that during the Class Period the Company and certain of its current and former executive officers issued material misrepresentations concerning its business, prospects and financial condition. Specifically, the Complaint alleges that the defendants: (i) issued false and misleading financial statements and press releases concerning the nature, quality and circumstances of the Company's major acquisitions, and (ii) failed to disclose the material, related-party nature of the transactions.

On January 13, 2011, Citron Research published a report that China Valves may be delisted from NASDAQ as it faces increased regulatory scrutiny over certain buyouts. Specifically, Citron Research stated that the financial results of Changsha Valve, an acquisition China Valves had made in 2010, have been overstated and that the acquisition was an improper related-party transaction.

In a reaction to this news, China Valves securities fell $1.57 per share or 18%, to close at $7.15 on January 13, 2011.

You may obtain a copy of the complaint and join the class action at www.saxenawhite.com. If you purchased LPS stock between January 12, 2010 and January 13, 2011, you may contact Joe White or Greg Stone at Saxena White P.A. to discuss your rights and interests.

If you purchased China Valves shares during the Class Period 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 April 5, 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.

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