LOS ANGELES, Nov. 5, 2010 (GLOBE NEWSWIRE) -- Glancy Binkow & Goldberg LLP announces that all persons or entities who purchased or otherwise acquired the securities of Duoyuan Global Water, Inc. ("Duoyuan Global Water" or the "Company") (NYSE:DGW) between November 9, 2009 and September 13, 2010, inclusive (the "Class Period"), have 17 days until the November 22, 2010, deadline to move the Court to serve as Lead Plaintiff in the securities fraud class action lawsuit. The case filed by Glancy Binkow & Goldberg LLP, Li v. Duoyuan Global Water, Inc., et al., No. 10-cv-07233-GBD, has been assigned to the Honorable George B. Daniels, United States District Judge for the Southern District of New York.
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201‑9150 or Toll Free at (888) 773‑9224, by email to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com.
The Complaint charges Duoyuan Global Water and certain of the Company's executive officers with violations of federal securities laws. Duoyuan Global Water engages in the manufacture and sale of water treatment equipment – including circulating water treatment equipment, water purification equipment and wastewater treatment equipment – primarily to wastewater treatment plants, water works facilities, manufacturing plants, commercial businesses, residential communities and individual customers in the People's Republic of China. The Company, primarily through its chairman, chief executive officer and controlling shareholder, Wenhua Guo, maintains a substantial interconnection with Duoyuan Printing, Inc. ("DYP"), a Beijing, China-based manufacturer of commercial offset printing presses, which shares the same headquarters as Duoyuan Global Water. Wenhua Guo also served as chairman of DYP during the Class Period and is the beneficial owner of 100% of the equity interest in Duoyuan Global Water's majority shareholder, Duoyuan Investments Limited.
The Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning Duoyuan Global Water's business, operations, and prospects were materially false and misleading. Specifically, defendants made false and/or misleading statements and/or failed to disclose, among other things, that: (1) due to the substantial interconnection between Duoyuan Global Water and DYP, the existence of accounting improprieties and ineffective internal controls at DYP could negatively impact Duoyuan Global Water; and (2), as a result, during the Class Period the defendants lacked a reasonable basis for their statements about Duoyuan Global Water, its business, operations, prospects and growth.
On September 13, 2010, DYP announced a series of alarming management changes – including the resignation of its CEO, its chief financial officer, and at least four members of its board of directors – and the dismissal of its independent registered public accounting firm, Deloitte Touche Tohmatsu CPA Ltd. As a result of this news, shares of Duoyuan Global Water declined $8.60 per share, or more than 41%, to close on September 13, 2010, at $12.10 per share, on unusually heavy trading volume. Although the announcement specifically concerned DYP, analysts at Janney Capital Markets suspended coverage of Duoyuan Global Water, and Piper Jaffray & Co. decreased its price target for the Company approximately 73%, from $34.00 per share down to $9.00 per share, effectively based on the significant ties between Duoyuan Global Water and DYP.
The Private Securities Litigation Reform Act of 1995 ("PSLRA") requires the Court to appoint a "Lead Plaintiff" in this case. Any person or group who suffered a loss as a result of purchasing Duoyuan Global Water securities during the Class Period may ask the Court to be appointed as Lead Plaintiff, but must file a motion no later than the November 22, 2010 deadline.
Glancy Binkow & Goldberg LLP is a law firm with significant experience in prosecuting class actions, substantial expertise in actions involving corporate fraud, and is representing Duoyuan Global Water shareholders in this litigation.
If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201‑9150, Toll Free at (888) 773‑9224, by e‑mail to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com.