NEW YORK, Aug. 13, 2014 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a class action lawsuit has been filed against China Commercial Credit, Inc. ("China Commercial" or the "Company") (Nasdaq:CCCR) and several of its officers and directors for alleged violation of the federal securities laws during the period of November 14, 2013, through July 25, 2014 (the "Class Period").
The complaint alleges that the defendants have violated certain provisions of the Securities Exchange Act of 1934. Specifically, the complaint alleges that defendants misrepresented and/or omitted material information concerning its true financial condition by misstating the Company's involvement with risky loans and loan guarantee obligations. In a February 18, 2014, Forbes article, China Commercial's CEO was quoted as saying that "[high risk loans] among microcredit companies [in China] are not widespread." On May 9, 2014, in a public offering, China Commercial sold 1,650,386 of its shares at $3.99 per share for net proceeds of $6.14 million.
On July 25, 2014, China Commercial issued a press release announcing that it had paid $5.4 million in loan guarantees in Q1 2014, but had only received $0.7 million in cash and $2.1 million in one-year notes from the borrowers. Further, it was disclosed that China Commercial had paid out $3.7 million in guarantees in Q2 2014, but had only recovered $1.1 million in cash and $1.6 million in one-year notes. On this news, China Commercial's stock price fell $1.20, or 32%, severely damaging investors.
If you purchased China Commercial common stock during the Class Period, you may move to be appointed as lead plaintiff by October 6, 2014. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wolf Haldenstein, or other counsel of your choice, to serve as your counsel in this action.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has over 70 attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please contact Wolf Haldenstein Adler Freeman & Herz LLP by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website at www.whafh.com. All e-mail correspondence should make reference to the "China Commercial Credit, Inc. Investigation."
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