According to the law firm press release, the lawsuit asserts violations of the federal securities laws against Lihua and certain of its officers and directors for issuing false and misleading statements about the Company's business and financial condition. The Complaint alleges that: (1) Lihua's business experienced a significant downturn starting from late 2012; (2) Lihua's production activities slowed down dramatically in 2013, and have almost ceased after January 31, 2014; (3) Lihua's warehouse has been seized by the local PRC court; (4) Defendant Jianhua Zhu, Lihua's Chairman and CEO, attempted to move inventory in order to hide them from creditors, and is now being investigated by the police for larceny.
On July 3, 2014, this case was transferred to the Southern District of New York.
On August 11, 2014, the Court issued an Order consolidating cases, appointing lead plaintiff, and approving lead counsel. This case was consolidated into Lead Case No. 14-cv- 5037.
Lead Plaintiff filed an amended complaint on October 23, 2014. This was followed by the filing of a second amended complaint on February 6, 2015.
On March 31, 2016, the Court issued an Order dismissing certain Defendants from this action.