NEW YORK, August 27, 2020 / PRNewswire / – Pomerantz LLP announces that a class action lawsuit has been filed against Kingold Jewelry, Inc. ("Kingold" or the "Company") (OTCMKTS: KGJI) and some of its officers. The class action 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 entity that has intervened, or otherwise acquired, Kingold securities 15th March 2018, and June 28, 2020including (the "Class Period"). Plaintiff is seeking damages caused by Defendants violating federal securities laws 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 up August 31, 2020to ask the court to appoint you as the lead plaintiff for the class. A copy of the complaint is available at www.pomerantzlaw.com. To discuss this action, please contact Robert S. Willoughby at the (Email protected) or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 7980. Those inquiring by email are asked to provide their postal address, telephone number, and the number of shares purchased.
(Click here for information on how to participate in the class action.)
Kingold purports to design, manufacture, and sell 24-karat gold jewelry and Chinese ornaments in the People's Republic of China.
The complaint alleges that during the entire classroom period the Defendants acted materially wrong and / or misleading because they were ruthlessly disregarding the following adverse facts about the business, business, and prospects of the Company, known to or by the Defendants were misrepresented and not disclosed. In particular, Defendants made false and / or misleading statements and / or failed to disclose that: (i) Kingold used counterfeit gold as collateral to fraudulently secure loans; (ii) as a result, the Company would be exposed to bankruptcy suits and delisted from the Shanghai Gold Exchange; and (iii) as a result, Defendants' statements about its business, business and prospects were materially false and misleading and / or were unfounded at all relevant times.
On June 29, 2020Prior to the market opening, 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 had used gold bars, which were actually made of gold-plated copper, as collateral for loans and was now being brought to justice, and that Kingold had been delisted from the Shanghai Gold Exchange.
On the news, Kingold shares fell $ 0.27 per share or over 24% to close 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 a leader in corporate, securities and antitrust litigation. Established by the late Abraham L. PomerantzPomerantz Company, known as the dean of class action, pioneered class action lawsuits. Today, more than 80 years later, the Pomerantz company continues its tradition and fights for the rights of victims of securities fraud, fiduciary violations and corporate misconduct. The company has received numerous millions of dollars in damages on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
SOURCE Pomerantz LLP