| Company: | China Commercial Credit, Inc. |
| Ticker Symbol: | CCCR |
| Class Period: | Nov-14-13 to Jul-25-14 |
| Date Filed: | Aug-11-14 |
| Lead Plaintiff Deadline: | Oct-10-14 |
| Court: | District of New Jersey |
| Allegations: | |
The complaint alleges that the Company and its executives violated federal securities laws with respect to its disclosures concerning its business, operations, and prospects.
Specifically, the action alleges that during the Class Period, China Commercial misled investors concerning the Company's involvement in risky loans and loan guarantee obligations. In a February 18, 2014 Forbes article, the CEO of China Commercial was quoted as stating that "[highly risky loans] among microcredit companies [in China] are not widespread." Later, on May 9, 2014, in a public offering, China Commercial sold 1,650,386 of its shares at $3.99 per share. In the prospectus, dated May 8, 2014, China Commercial represented that it estimated losses on its guarantee business to be 1% of the contract amount.
On July 25, 2014, the Company issued a press release stating that (i) it had paid out $5.4 million in loan guarantees in Q1 2014, and had recovered only $0.7 million in cash and $2.1 million in one-year notes payable by the borrowers; and (ii) it had paid out $3.7 million in guarantees in Q2 2014, of which it had only received $1.1 million in cash and $1.6 million in one-year notes payable by the borrowers.
Following this news, the price of China Commercial stock declined by $1.20, or 32%, to close on July 25, 2014 at $2.55 per share.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
