China Natural Gas Inc. is a Chinese energy company that distributes and sells natural gas and gasoline in the People's Republic of China.

According to the Complaint filed on August 26, 2010, the Company did not disclose and did not properly account for the bank loan in its March 2010 Form 10-Q. Defendants disseminated or approved these and other materially false and misleading statements, which they knew or recklessly disregarded were misleading in that they contained misrepresentations and failed to disclose material facts necessary to make the statements made, in light of the circumstances under which they were made, not misleading.

According to the Company's FORM 10-Q for the quarterly period ended June 30, 2011, on August 26, 2010, plaintiff Maxwell Vandevelde filed a putative class action against the Company and certain of its officers and directors. The Complaint alleges that Defendants violated U.S. federal securities laws for failing to disclose material facts regarding its financial well-being. The suit seeks unspecified monetary damages. On June 29, 2011, after reviewing the competing motions filed by Richard Crippa (“Crippa”) and Robert Skeway (“Skeway”) for appointment as lead Plaintiff and approval of selection of lead Counsel, United States District Court for the District of Delaware denied without prejudice both motions and ordered Crippa and Skeway to submit supplemental briefs on or before July 12, 2011.

On August 12, 2011, Judge Sue L. Robinson granted Skeway's motion to appoint lead Plaintiff and approve lead Plaintiff's selection of Counsel. An Amended Complaint was filed on October 11, 2011. The Defendants responded by filing a motion to dismiss on December 12, 2011.

On July 6, 2012, the Court issued an order granting Defendants' motion to dismiss. Plaintiffs were granted leave to amend their Complaint within twenty-one days of the order.

On July 27, 2012, the Plaintiffs filed their second amended Complaint.

On April 9, 2013, the Court issued an Order administratively closing this case pending bankruptcy litigation.

On June 18, 2014, the Court certified the lead Plaintiff’s Motion for Class Certification.

On January 28, 2016, the parties entered into a Stipulation of Settlement. This Settlement was preliminarily approved by the Court on February 10. On June 2, the Settlement was granted final approval by the Court and this case was dismissed.