NEW YORK, Feb. 7, 2005 (PRIMEZONE) -- Murray, Frank & Sailer LLP announces the filing of a class action lawsuit in the United States District Court for the Southern District of New York on behalf of shareholders who purchased or otherwise acquired the securities of China Aviation Oil Singapore Corporation ("China Aviation" or the "Company") (Pink Sheets:CAOLF) between March 27, 2003 and November 30, 2004, inclusive (the "Class Period").
The Complaint alleges that, during the Class Period, defendants issued false and misleading statements regarding the Company's business and prospects. As a result of the defendants' false statements, China Aviation shares traded at inflated levels during the Class Period, whereby the Company's top officers and directors assisted the Company's parent company/controlling shareholder in the sale of $120 million worth of its own shares.
More specifically, the complaint alleges the following facts, which were known by each of the defendants but concealed from the investing public during the Class Period: a) that contrary to the Company's prospectus, the Company did not have the necessary risk management controls in place for hedging and trading; b) that contrary to the private placement offering documents, the funds raised were not to fund an acquisition of the controlling shareholders but rather to meet margin calls for the massive derivative losses in the Company; and c) that the Company's financial statements were grossly overstated or the Company was hiding liabilities totaling in excess of $550 million in derivative trading losses.
On November 30, 2004, Bloomberg published an article entitled "China Aviation Seeks Court Protection After $550 Million Oil Loss," which stated in part:
China Aviation Oil (Singapore) Corp., supplier of a third of
China's jet fuel, will ask Singapore's High Court for
protection from creditors after losing about $550 million
from bad bets on oil prices.
Also on November 30, 2004, Bloomberg published an article entitled "Singapore Shareholder Group 'Shocked' by China Aviation Loss," which stated in part:
The Securities Investors Association Singapore, a group
representing retail investors in the city-state, said it's
"shocked" by China Aviation Oil (Singapore) Corp.'s $550
million loss from bad debts on the price of oil.
"To the shareholders, it's a corporate earthquake..." David
Gerald, president of the group, said in an interview. "Is this
another Barings? They're asking."
China Aviation is not currently trading on any securities exchange.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired China Aviation securities on any world exchange between March 27, 2003 and November 30, 2004, and sustained damages, you may, no later than March 6, 2005, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.
More information on this and other class actions can be found on the Class Action Newsline at http://www.primezone.com/ca.