NEW YORK, Dec. 9, 2011 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross LLP is investigating claims on behalf of investors of Keyuan Petrochemicals ("Keyuan" or the "Company") who purchased or otherwise acquired Keyuan securities between August 16, 2010 through October 7, 2011 (the "Class Period"). Such investors are advised to contact Rachelle R. Boyle at rrboyle@pomlaw.com or 888-476-6529, ext. 350.
The investigation concerns whether Keyuan and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
Prior to the stock market open on April 1, 2011, trading in the Company's stock was inexplicably halted. The last trade was at $4.88 per share. Later the same day, the Company filed a Form 12b-25 with the Securities and Exchange Commission announcing that it would not be able to timely file its annual report for the fiscal year ended December 31, 2010 due to issues raised by Keyuan's auditor, KPMG, LLP, "regarding certain cash transactions and recorded sales." The Company also later announced that the Audit Committee had begun an investigation and that it had been informed by its auditor that its previously issued financial statements could not be relied upon.
On May 31, 2011, the Company announced that KPMG had resigned as Keyuan's auditor, and on October 6, 2011 the Company announced that Keyuan's stock would be delisted from NASDAQ.
On October 7, 2011, the Company's stock began trading over-the-counter as "pink sheets," opening for trade at $1.05 per share, and closing eventually that day at $1.50 per share, a decline of $3.38 per share or 69%.
The Pomerantz Firm, with offices in New York, Chicago, and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.