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China Natural Gas Inc CHNG Securities Stock Fraud

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Company: China Natural Gas Inc
Ticker Symbol: CHNG
Class Period: Mar-10-10 to Aug-19-10
Date Filed: Sep-1-10
Lead Plaintiff Deadline: Oct-31-10
Court: ---
Allegations:
New York, NY: A class action lawsuit has been filed on behalf of purchasers of China Natural Gas, Inc common stock during the period from March 10, 2010 through August 19, 2010. No class has yet been certified.

The complaint asserts claims against China Natural Gas and its officers and directors for violations of the federal securities laws. The complaint alleges that China Natural Gas concealed the existence of a $17.7 million loan liability on its balance sheet, understated restricted cash by $17.7 million, improperly accounted for $45.6 million in senior notes as short term liabilities, rather than long term, and failed to disclose that it is in default under the senior note indenture.

As a result of defendants' false statements about China Natural Gas' financial condition, its stock traded at inflated prices - as high as $10.78 per share - during the Class Period. On August 13, 2010, the Company disclosed the existence of the $17.7 million loan liability, the default under the indenture and that it would restate its financial statements to properly account for these matters. On August 20, 2010, the Company filed its restated financial statements. As a result, China Natural Gas' stock price dropped substantially, causing stockholders to suffer losses in their investments.

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.

China Natural Gas Inc CHNG Securities Fraud Legal Help

If you have suffered from financial losses, you may qualify for damages or remedies that may be awarded in a possible China Natural Gas Inc securities class action lawsuit. Please fill in our form on the right to submit your complaint for a free evaluation.

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