Case Page

 

Case Status:    SETTLED
On or around 06/07/2017 (Other)

Filing Date: August 06, 2014

According to the law firm press release, the Company issued materially false and misleading financial statements about its true financial condition by misstating the Company’s involvement in risky loans and loan guarantee obligations. In a February 18, 2014 Forbes article, CCCR’s CEO was quoted as saying that “[highly risky loans] among microcredit companies [in China] are not widespread.” On May 9, 2014, in a public offering, CCCR sold 1,650,386 of its shares at $3.99 per share, with net proceeds to it of $6.14 million. In the prospectus, dated May 8, 2014, CCCR represented that it estimates loss on its guarantee business to be about 1% of the contract amount.

On July 25, 2014, CCCR issued a press release stating that (a) it had paid out $5.4 million in loan guarantees in Q1 2014, and had received only $0.7 million in cash and $2.1 million in one-year notes from the borrowers, and (b) it had paid out $3.7 million in guarantees in Q2 2014, of which it had only recovered $1.1 million, and converted $1.6 million of it to one-year notes. On this news, CCCR’s stock price fell $1.20, or 32%, damaging investors.

On October 31, 2014, the Court issued an Order appointing lead plaintiff and approving lead counsel.

On December 29, 2014, an Order was issued transferring this case to the Southern District of New York.

An amended complaint was filed on March 27, 2015. This was followed by a second amended complaint on April 6.

The parties filed a Stipulation of Settlement on January 11, 2017. The Settlement was preliminarily approved on January 25. On June 1, 2017, the Court granted final approval of the Settlement and dismissed this case with prejudice.

COMPANY INFORMATION:

Sector: Financial
Industry: Regional Banks
Headquarters: China

SECURITIES INFORMATION:

Ticker Symbol: CCCR
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. New York
DOCKET #: 14-CV-04956
JUDGE: Hon. Stanley R. Chesler
DATE FILED: 08/06/2014
CLASS PERIOD START: 11/14/2013
CLASS PERIOD END: 07/25/2014
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. The Rosen Law Firm (New Jersey)
    236 Tillou Road, The Rosen Law Firm (New Jersey), NJ 07079
    (973) 313-1887 (973) 833-0399 · lrosen@rosenlegal.com
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 15-CV-00557
JUDGE: Hon. Stanley R. Chesler
DATE FILED: 04/06/2015
CLASS PERIOD START: 08/14/2013
CLASS PERIOD END: 07/25/2014
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Levi & Korsinsky, LLP
    30 Broad Street, 15 1h Floor, Levi & Korsinsky, LLP, NY 10004
    212.363.7500 212.363-7171 ·
No Document Title Filing Date