NEW YORK, July 8, 2020 / PRNewswire / – Pomerantz LLP Announces A Class Action Lawsuit Against Kingold Jewelry, Inc. ("Kingold" or the "Company") (NASDAQ: KGJI) and some of its officers. The class action lawsuit filed in The United States District Court for the Eastern District of new Yorkand indexed at 20-cv-03050, is on behalf of any person or organization that has purchased or otherwise purchased Kingold securities March 15, 2018, and June 28, 2020including (the "class period"). The plaintiff is seeking compensation for damages caused by the defendant's violations of the Federal Securities Act under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who bought Kingold Securities during the class period, you have until August 31, 2020to ask the court to appoint you as the primary plaintiff for the class. A copy of the complaint is available at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at the (Email protected) or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 7980. Those who inquire via email are asked to provide their mailing address, phone number, and number of shares purchased.
(Click here for information on participating in the class action lawsuit.)
Kingold claims to design, manufacture, and sell 24-carat gold jewelry and Chinese ornaments in the People's Republic of China.
The complaint alleges that the defendants have been materially wrong and / or misleading throughout the teaching period because they have the following adverse facts about the business, operations, and prospects of the company that the defendants were aware of or recklessly disregarded by the defendant were misrepresented and would not have disclosed. In particular, the defendants provided false and / or misleading information and / or did not disclose that: (i) Kingold used counterfeit gold as security for fraudulent credit protection; (ii) consequently, the Company would be sued and delisted by the Shanghai Gold Exchange; and (iii) as a result, the defendant's statements regarding its business, operations and prospects were materially incorrect and misleading and / or had no reasonable basis at all relevant times.
On June 29, 2020Before the market opened, Caixin Global published an article entitled "Cover Story: The Secret of $ 2 billion of Loans Backed by Fake Gold. "The article found, among other things, that Kingold's gold bar, which was actually made of gold-plated copper, had been used as collateral for credit and was now being brought to justice and that Kingold had been delisted from the Shanghai Gold Exchange.
In this news, the Kingold stock fell $ 0.27 per share or close over 24% at $ 0.85 per share on June 29, 2020.
The Pomerantz company with offices in new York, Chicago, los Angeles, and Paris, is recognized as one of the leading companies in corporate, securities and antitrust litigation. Founded by the late Abraham L. PomerantzThe Pomerantz company, known as the dean of the class action lawsuit, was a pioneer in the field of class action lawsuits for securities. Today, more than 80 years later, the Pomerantz company continues its tradition and fights for the rights of victims of securities fraud, breaches of trust and misconduct by companies. The company has claimed back several million dollars in damages on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
SOURCE Pomerantz LLP