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Oklahoma City, OK (January 4, 2019) – On January 2, 2019, a securities class action lawsuit was filed in the United States District Court for the Eastern District of New York against Yangtze River Port and Logistics Limited (NASDAQ: YRIV). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is February 2, 2016 through December 5, 2018. More specifically, the complaint alleges that throughout the class period defendants made false and/or misleading statements and/or failed to disclose that: (1) Yangtze’s purported lease of the Wuhan Yangtze River Newport Logistics Center, the company’s main asset, was a fabrication; (2) Yangtze’s only operating subsidiary, Wuhan Yangtze River Newport Logistics Co., Ltd., was declared insolvent in China due to a number of default judgments against it; and (3) as a result, defendant’s statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On December 6, 2018, Hindenburg Research (”Hindenburg”) published a report entitled ”Yangtze River Port & Logistics: Total Zero. On-the-Ground Research Shows Assets Appear to be Largely Fabricated.” The Hindenburg report described Yangtze as ”a scheme run by its Chairman & controlling shareholder to siphon money away from U.S. public markets.” Among other allegations, the Hindenburg report asserted that Yangtze’s ”only operating entity has been declared insolvent in China and is involved in multiple undisclosed legal proceedings” and citing ”government-sourced documents and interviews with local officials, we believe that at least 77% of the company’s reported assets are fabricated.”
Following publication of the Hindenburg Report, Yangtze’s stock price fell $3.34 per share, or 28.74%, over the following two trading sessions, closing at $8.28 per share on December 7, 2018.
Plaintiff seeks to recover damages on behalf of all Yangtze River Port and Logistics Limited shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, March 4, 2019 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
If you wish to discuss this action, obtain further information and participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact: Robin Hester at email@example.com