Glancy Binkow & Goldberg LLP, Representing Investors Who Purchased Duoyuan Global Water, Inc., Announces Class Action Lawsuit and Seeks to Recover Losses
Los Angeles, CA — Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of a class consisting of all persons or entities who purchased the securities of Duoyuan Global Water, Inc. (“Duoyuan Global Water” or the “Company”) (NYSE:DGW) between November 9, 2009 and September 13, 2010, inclusive (the “Class Period”).
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at firstname.lastname@example.org, or visit our website at http://www.glancylaw.com.
The Complaint charges Duoyuan Global Water and certain of the Company’s executive officers with violations of federal securities laws. Duoyuan Global Water engages in the manufacture and sale of water treatment equipment – including circulating water treatment equipment, water purification equipment and wastewater treatment equipment – primarily to wastewater treatment plants, water works facilities, manufacturing plants, commercial businesses, residential communities and individual customers in the People’s Republic of China. The Company, primarily through its chairman, chief executive officer and controlling shareholder, Wenhua Guo, maintains a substantial interconnection with Duoyuan Printing, Inc. (“DYP”), a Beijing, China-based manufacturer of commercial offset printing presses, which shares the same headquarters as Duoyuan Global Water. Wenhua Guo also served as chairman of DYP during the Class Period and is the beneficial owner of 100% of the equity interest in Duoyuan Global Water’s majority shareholder, Duoyuan Investments Limited.
The Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning Duoyuan Global Water’s business, operations, and prospects were materially false and misleading. Specifically, defendants made false and/or misleading statements and/or failed to disclose, among other things, that: (1) due to the substantial interconnection between Duoyuan Global Water and DYP, the existence of accounting improprieties and ineffective internal controls at DYP could negatively impact Duoyuan Global Water; and (2), as a result, during the Class Period the defendants lacked a reasonable basis for their statements about Duoyuan Global Water, its business, operations, prospects and growth.
On September 13, 2010, DYP announced a series of alarming management changes – including the resignation of its CEO, its chief financial officer, and at least four members of its board of directors – and the dismissal of its independent registered public accounting firm, Deloitte Touche Tohmatsu CPA Ltd. As a result of this news, shares of Duoyuan Global Water declined $8.60 per share, or more than 41%, to close on September 13, 2010, at $12.10 per share, on unusually heavy trading volume. Although the announcement specifically concerned DYP, analysts at Janney Capital Markets suspended coverage of Duoyuan Global Water, and Piper Jaffray & Co. decreased its price target for the Company approximately 73%, from $34.00 per share down to $9.00 per share, effectively based on the significant ties between Duoyuan Global Water and DYP.
Plaintiff seeks to recover damages on behalf of class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the class described above, you may move the Court, no later than November 22, 2010, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224, by e-mail to email@example.com, or visit our website at http://www.glancylaw.com.