| Company: | China Natural Gas Inc |
| Ticker Symbol: | CHNG |
| Class Period: | Mar-10-10 to Aug-19-10 |
| Date Filed: | Sep-1-10 |
| Lead Plaintiff Deadline: | Oct-31-10 |
| Court: | --- |
| Allegations: | |
The complaint asserts claims against China Natural Gas and its officers and directors for violations of the federal securities laws. The complaint alleges that China Natural Gas concealed the existence of a $17.7 million loan liability on its balance sheet, understated restricted cash by $17.7 million, improperly accounted for $45.6 million in senior notes as short term liabilities, rather than long term, and failed to disclose that it is in default under the senior note indenture.
As a result of defendants' false statements about China Natural Gas' financial condition, its stock traded at inflated prices - as high as $10.78 per share - during the Class Period. On August 13, 2010, the Company disclosed the existence of the $17.7 million loan liability, the default under the indenture and that it would restate its financial statements to properly account for these matters. On August 20, 2010, the Company filed its restated financial statements. As a result, China Natural Gas' stock price dropped substantially, causing stockholders to suffer losses in their investments.
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.
