Fuqi International, Inc., a Chinese designer of precious metal jewelry, selling a wide range of products in the Chinese luxury goods market, and having a British Virgin Islands-registered subsidiary Fuqi International Holdings Co., Ltd., has been filed additional lawsuit. Murray, Frank & Sailer LLP is now investigating federal securities claims against Fuqi International, on behalf of all investors who purchased Fuqi common stock in connection with the company’s second public offering on or about July 22, 2009 through early August 2009. In this offering, Fuqi International sold over 5 million shares at US$21.50 per share.
The investigation concerns violations of certain sections under the Securities Act of 1933 through the issuance of materially false and misleading registration statements, prospectus, and other documents which failed to disclose that the company’s wholesale business was slowing. As a result of company’s actions, its financial statements were materially false and misleading at all relevant times.
Murray, Frank & Sailer LLP has already filed the class action against Fuqi International, Inc. in the US District Court for the Southern District of New York, on behalf of all individuals and institutions who purchased publicly traded securities during the period between May 15, 2009 and March 16, 2010, alleging violations of the Securities Exchange Act of 1934.