Rosen Law Firm Achieves Significant Victory in the Puda Coal Class Action
On March 15, 2013, U.S. District Court Judge Katherine B. Forrest issued an order that resolved six motions to dismiss the operative complaint filed by accounting firms MSPC Certified Public Accountants and Advisors, P.C. ("MSPC"), Moore Stephens Hong Kong ("MSHK") and Moore Stephens International Ltd., by underwriters Macquarie Capital (USA) and Brean Murray, Carret & Co., and by two Puda directors, C. Mark Tang and Lawrence Wizel. The Court denied MSPC's and MSHK's motions in their entirety, finding that plaintiffs stated valid claims against Puda's auditors for violations of Section 10(b) of the 1934 Exchange Act and for violations of Section 11 of the 1933 Securities Act ("1933 Act"). The Court also denied in their entirety the underwriters' motions to dismiss, finding that plaintiffs stated claims against both for violations of Sections 11 and 12(a)(2) of the 1933 Act. Finally, the Court held that plaintiffs had stated valid claims against directors C. Mark Tang and Lawrence Wizel for violations of Section 11 and 15 of the 1933 Act.
These rulings constitute a significant victory for Puda's shareholders. The defendants whose motions were denied in full or in part must answer the complaint and provide both written evidence and testimony to plaintiffs.
The Rosen Law Firm is serving as Court appointed Co-Lead Counsel for Puda Coal investors.