Dreier LLP Announces Class Action Lawsuit Against Fuwei Films (Holdings) Co., Ltd. (FFHL).
If you purchased FFHL common stock during the Class Period, you may be a member of the proposed Class. You must move the Court on or before December 18, 2007 if you wish to serve as a lead plaintiff. Lead plaintiffs must meet certain legal requirements. If you have acquired FFHL common stock and want to discuss your legal rights, you may contact Daniel B. Scotti (email@example.com) of Dreier LLP at 800-952-8897. Class members may retain counsel of their choice and move the Court to serve as a lead plaintiff, or may choose to do nothing and remain absent class members.
FFHL, through its wholly owned subsidiary, Shandong Fuwei Films Co., Ltd., develops, manufactures, and distributes plastic films using the biaxial oriented stretch technique, otherwise known as BOPET film (biaxially oriented polyethylene terephthalate). The Company's films are used in consumer based packaging, such as food, pharmaceutical, cosmetics, tobacco, and alcohol industries; imaging, such as masking film, printing plates, and microfilms; electronics and electrical industries, such as wire and cable wrap, capacitors and motor insulation; and in magnetic products, such as audio and video tapes.
On December 19, 2006, the Company commenced its initial public offering (the "IPO"), priced at $8.28 per share for 3,750,000 shares of Company stock. The company reported gross proceeds, including over-allotments, of approximately $35.6 million from the IPO.
The complaint alleges that during the Class Period, defendants misled investors by issuing a false and misleading Registration Statement and Prospectus (collectively the "Registration Statement") in connection with the Company's IPO. Specifically, the Complaint alleges that: (a) the Registration Statement failed to reveal that the Company's main operating assets were obtained through transactions that were invalid under Chinese laws and regulations; (b) the Registration Statement failed to provide complete disclosures as to the circumstances relating to the Company's acquisition of its primary productive operating assets; and (c) the Registration Statement inaccurately stated that the likelihood of any recourse or action by the original asset holders or relevant authorities was "remote", when in truth the risk of such action was imminent as the transactions were not valid and/or aboveboard under Chinese laws and regulations.
On June 25, 2007, the Company announced that three of FFHL's major shareholders, including a Company director, were under investigation. On October 16, 2007, the Company announced that authorities in China had issued arrest notices for the same three individuals, on suspicion of violations of Chinese laws and regulations. The Complaint asserts that these charges related to FFHL's acquisition of its main operating assets. In reaction to this news, the price of FFHL common stock dropped precipitously, thereby damaging investors.
Dreier LLP's Class Action Litigation Group has vast experience representing domestic and foreign institutional and individual investors in securities and other class actions throughout the country. The partners who head Dreier LLP's Class Action Litigation Group have successfully prosecuted securities fraud class actions in a wide variety of industries and have played a significant role in cases that have resulted in some of the largest securities class action settlements. Prior results do not guarantee a similar outcome. As of the date of this Notice, Dreier LLP has not filed a complaint against FFHL.
Background on Dreier LLP
Dreier LLP was founded in 1996 by Marc Dreier as a more responsive and innovative alternative to traditional "large-firm" lawyering. Dreier LLP represents a wide range of institutional, entrepreneurial and individual clients in diverse sectors of financial, industrial and service-oriented markets. The firm's principal practices are commercial litigation, class action litigation, real estate, bankruptcy and corporate reorganization, employment, corporate and securities, entertainment, intellectual property, matrimonial and tax. Dreier LLP's Los Angeles affiliate, Dreier Stein & Kahan LLP, has its principal practice in entertainment and commercial litigation and corporate transactions. The firm's affiliate Schlesinger Gannon & Lazetera LLP has an extensive practice in the area of trusts and estates law. Pitta & Dreier LLP is an affiliate which specializes in labor law, and Pitta, Bishop, Del Giorno & Dreier LLP specializes in government relations. In the 10 years since its founding, Dreier LLP, with its affiliate members, has grown to nearly 200 attorneys, with its principal office at 499 Park Avenue in Manhattan, and additional offices in Los Angeles; Santa Monica, California; Albany, New York; and Stamford, Connecticut.
CONTACT: Daniel B. Scotti, Esq., Dreier LLP, +1-800-952-8897, firstname.lastname@example.org
Web site: http://www.dreierllp.com/
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|Date:||Oct 30, 2007|
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