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Longwei Petroleum Securities Class Action Lawsuit
By Andrea Gressman
Longwei securities fraud lawsuitA securities class action lawsuit has been filed against Longwei Petroleum Investment Holding Limited (LPH) in the U.S. District Court for the Central District of California. The securities lawsuit was filed on behalf of all persons or entities that made a purchase of any Longwei common stock between the dates of May 17, 2010 and January 3, 2013.

Longwei Petroleum Investment Holding Limited is a company that provides the wholesale distribution of energy to the People’s Republic of China. The Longwei securities lawsuit claims that the defendants made false as well as misleading statements to shareholders and omitted critical facts about the company that were negative in nature regarding the company’s future prospects and operations of the company.


There were several complaints made in the Longwei securities fraud lawsuit. One such complaint is that the company made an exaggeration when it came to their November 2012 sales numbers regarding the fuel depot facility that is used for storage in Taiyuan and Gujiao, Shanxi.  Another specific complaint is that the company did not disclose a $32 million investment that was made into a business involving tourism that was made by Shanxi Zhinghe Energy Conversion Co., Ltd, a company subsidiary. Another direct claim is that by the company not disclosing all of the important information the stocks were traded at a price that was artificially inflated.

73% Drop in the Cost Per Share Leads to Securities Class Action Lawsuit

The potential class action lawsuit alleges Longwei exaggerated the actual financial performance that led investors to believe that the amount of sales were substantial, when in actually they were slow and had a very low amount of activity. The company failed to disclose the $32 million investment as mentioned above but also mentioned that they failed to disclose a $222 million total commitment that was made in the tourism business as well, according to the lawsuit. Upon the investors discovering this information there was a 73% drop per share on January 3, 2013 and the shares closed at $0.62 from $2.30 per share that is was on the day before. This affected a 14 million share volume

As a result, a securities fraud class action lawsuit has been filed. If you or someone you know purchased shares from  Longwei Petroleum Investment Holding Limited or another company and believe that you were the victim of a securities fraud visit the Securities Fraud, Stock Fraud Investment Class Action Lawsuit Investigation page right away. There are qualified securities fraud lawsuit attorneys standing by ready to investigate your claim and provide you with a free legal review.

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Updated January 23rd, 2013

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2 thoughts onLongwei Petroleum Securities Class Action Lawsuit

  1. Justin says:

    I bought and sold this stock before it crashed. Does that mean i am not considered for lawsuit>?

  2. Jeffrey Molnar says:

    I own LPIH

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