China XD Plastics Company Limited manufactures engineering plastic resins, primarily for the automotive industry.

According to the law firm press release, China XD Plastics filed materially false and misleading financial statements with the SEC because the Company’s financial statements filed with Chinese regulatory authorities showed a fraction of the revenue and income reported in the Company’s SEC filings. On July 10, 2014, Bleecker Street Research released a report asserting that China XD Plastics had filed reports with regulators in China that showed materially smaller amounts of revenue and net income for fiscal years 2010, 2011 and 2012, than its SEC filings. In addition, the report asserts that China XD Plastics’ gross margins are unbelievably high relative to its competitors, and that its CFO has been linked to an embarrassing financial fraud at another Chinese public company. The Complaint alleges that this adverse information caused the price of China XD Plastics stock to drop, damaging investors.

On April 10, 2017, the Court entered Judgment in favor of Defendants and dismissed this case.