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The Securities Arbitration Law Firm of KlaymanToskes announced today that a class action lawsuit, Case No. 11-CV-04402, has been filed against Longtop Financial Technologies (“Longtop”) (NYSE: LFT) on behalf of investors who purchased Longtop stock during the class period of June 29, 2009 through April 25, 2011. Once trading at $42.73 in November 2010, Longtop no longer trades on the New York Stock Exchange. Potential class members who purchased Longtop stock should consider whether they should file an individual securities arbitration claim in addition to participating in the class action. Investors who held Longtop stock at a full service brokerage firm and sustained substantial losses, including those who held a concentrated position in Longtop, may be able to recover their losses through the arbitration forum established by the Financial Industry Regulatory Authority (“FINRA”). FINRA’s Arbitration Department is where investors, both retail and institutional, go to seek redress as a result of sales practice violations committed by their brokerage firm, including claims of over-concentration, misrepresentation and omission, unsuitable recommendations and failure to supervise.
According to the Complaint, on May 17, 2011 a trading halt was instituted on Longtop’s common stock. On May 23, 2011 Longtop issued a press release announcing, among other things, (1) the resignation of its auditor, Deloitte Touche Tohmatsu CPA Ltd. (“Deloitte”); (2) the resignation of Longtop’s Chief Financial Officer; (3) the initiation of an SEC inquiry; (4) and the formation of a special investigation. According to the announcement, Deloitte was resigning because of “(1) the recently identified falsity of the Company’s financial records in relation to cash at bank and loan balances (and possibly in sales revenue); (2) the deliberate interference by certain members of Longtop management in Deloitte’s audit process; and (3) the unlawful detention of Deloitte’s audit files.”
Investors who held Longtop stock with a full service brokerage firm and sustained significant losses can contact KlaymanToskes to explore their legal rights and options.