Longtop Financial, Inc LFT Securities Fraud

May 23 2011 - by Lucy Campbell

Company:	Longtop Financial, Inc
Ticker Symbol:	LFT
Class Period:	Jun-29-09 to Apr-25-11
Date Filed:	May-23-11
Lead Plaintiff Deadline:	Jul-22-11
Court:	Central District of California
Allegations:

New York, NY: A securities fraud class action has been filed on behalf investors who purchased the common stock of Longtop Financial, Inc. (NYSE: LFT). The lawsuit charges violations against Longtop Financial and its officers and directors for issuing materially false and misleading financial statements to the investing public between June 29, 2009 and April 25, 2011, inclusive (the "Class Period"). No class has yet been certified.

The Complaint asserts violations of the federal securities laws against Longtop and its officers and directors for misrepresenting the true financial condition of the Company and failing to disclose material related party transactions during the Class Period. Beginning on April 26, 2011 a series of reports issued by Citron Research and others exposed potential accounting fraud and nondisclosure of related party transactions at Longtop.

On May 17, 2011 a trading halt was instituted on Longtop' common stock. On May 23, 2011 Longtop issued a press release announcing, among other things, (1) the resignation of its auditor, Deloitte Touche Tohmatsu CPA Ltd. ("DTT"); (2) the resignation of Longtop' Chief Financial Officers; (3) the initiation of an SEC inquiry; (4) and the initiation of an independent investigation. According to the announcement, DTT was resigning because of "(1) the recently identified falsity of the Company's financial records in relation to cash at bank and loan balances (and possibly in sales revenue); (2) the deliberate interference by certain members of Longtop management in DTT's audit process; and (3) the unlawful detention of DTT's audit files."

DTT also stated that it "was no longer able to rely on management' representations in relation to prior period financial reports, that continued reliance should not longer be placed on DTT' audit reports on the previous financial statements, and DTT declined to be associated with any of the Company' financial communications in 2010 and 2011.

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.

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