L&L Energy, Inc. Summary: According to the complaint filed on August 26, 2011, the defendants violated federal securities laws in connection with allegedly material false and misleading financial statements with the Securities and Exchange Commission.
The plaintiffs state that statements contained in the Company’s 10-K filings dating back to 2009 contained materially false information. On July 29, 2011, the Company issued an amendment to its 2010 10-K along with a statement acknowledging certain deficiencies in the process in which it produced it consolidated financials and that previous 10-K statements were no longer reliable.
This adverse news caused the Company’s stock to fall from $.79/share, or 15.9% on August 1, 2011. On August 2, 2011, an independent financial research firm, published a report alleging that the revenues and net incomes claimed by the Company’s SEC filings for the calendar year ended 2009 are inaccurate because financial statements filed the PRC authorities show that the Company’s sales to be $65 million less, and net profits to be $19 million less, when compared to the Company’s SEC filings. The report concludes that the Company’s assets are only 25% of the value of that the Company claims in its SEC filings, and that the Company’s net sales are four times smaller than what it claims in its SEC filings. The report also raised additional red flags of fraud indicating that the Company’s periodic reports filed with the SEC during the class period are not accurate.
As a result of this information, the Company’s stock fell over $.84 a share, or 17.3 from August 2 through August 4, 2011.
On December 15, 2011, the Court issued an order appointing Lead Plaintiff and approving of Lead Counsel in addition to consolidating several cases under the new caption In re L&L, Inc. Securities Litigation.
On February 8, 2012, the Lead Plaintiff filed an amended complaint for violations of the Federal securities laws.
On December 3, 2012, the Court issued an Order granting the defendants' motion to dismiss and thus dismissing the Second Amended Class Action Complaint. Plaintiff may file a motion for leave to amend. On February 4, 2013, the Plaintiff filed their Third Amended Class Action Complaint.
SIC Code: 1220
WARNING AND DISCLAIMER OF LIABILITY:
The information included on this Web site, whether provided by personnel employed by Stanford Law School or by third parties, is provided for research and teaching purposes only. Neither Stanford University, Stanford Law School, nor any of their employees, agents, contractors, or affiliates warrant the accuracy or completeness of the information or analyses displayed herein, and we caution all readers that inclusion of any information on this site does not constitute an endorsement of the truthfulness or accuracy of that information. In particular, this Web site contains complaints and other documents filed in federal and state courts, which make allegations that may or may not be accurate. No reader should, on the basis of information contained in or referenced by this Web site, assume that any of these allegations are truthful.
Go to Search page | Go to Case Index page | Back to Top