Duoyuan Printing Inc.
Pomerantz has been named Co-Lead Counsel in a class action lawsuit against Duoyuan Printing(or the "Company") (NYSE:DYP) and certain of its top officials. The class action (Case No: 10-civ-7235) was filed on behalf of purchasers of the securities of Duoyuan Printing pursuant and/or traceable to the Company's November 6, 2009 initial public offering and purchasers of the securities during the period from November 6, 2009 through and including September 13, 2010 (the "Class Period"). The Complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act and Rule 10b-5 promulgated thereunder and Sections 11, 12(a)(2) and 15 of the Securities Act.
Duoyuan Printing is a manufacturer of commercial offset printing presses in China. The complaint alleges that throughout the Class Period, defendants made false and/or misleading statements, where they failed to disclose (1) that the authenticity of certain of the Company's expenses related to advertising and tradeshow costs could not be verified; (2) that the Company had improper relationships with certain vendors and distributors; (3) that, as a result, the Company's financial results were misstated during the Class Period; (4) that the Company lacked adequate internal and financial controls; and (5) that, as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On September 13, 2010, Duoyuan Printing disclosed that the Company dismissed its independent registered public accounting firm, Deloitte Touche Tohmatsu CPA Ltd., and was reorganizing its top management in connection with Duoyuan Printing's "desire to resolve open issues and file our 10-K on a timely basis." Moreover, the Company's Chief Executive Officer, Chief Financial Officer and four members of the Company's Board of Directors resigned after the dismissal of Deloitte. As a result of the revelations, Duoyuan Printing securities declined $3.60 or more than 54% and closed at $2.99 on September 13, 2010.
