NEW YORK, July 2, 2014 (GLOBE NEWSWIRE) -- Pomerantz LLP has filed a class action lawsuit against China Ceramics Co., Ltd. ("China Ceramics" or the "Company") (Nasdaq: CCCL ) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 14-cv-4997, is on behalf of a class consisting of all persons or entities who purchased China Ceramics between March 30, 2012 and May 1, 2014, inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased China Ceramics securities during the Class Period, you have until August 5, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com . To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
China Ceramics is a leading Chinese manufacturer of ceramic tiles used for exterior siding and for interior flooring and design in residential and commercial buildings.
The Complaint alleges that throughout the Class Period, Defendants failed to disclose and/or materially misstated its true financial condition. On May 1, 2014, NASDAQ announced that trading in China Ceramics was halted that day for "additional information requested" from the Company. On that same day, China Ceramics announced, among other things, that: (i) on April 30, 2014, the Company terminated the engagement of Grant Thornton as its principal independent registered public accountant; (ii) following the decision to terminate Grant Thornton, William L. Stulginsky tendered his resignation as an independent director and Chairman of the Audit Committee; (iii) the audit of the Company's consolidated financial statements for the year ended December 31, 2013 has not been completed; (iv) the Company is unable to timely file its Annual Report on Form 20-F for the year ended December 31, 2013; and (v) during the preparation of its 2013 financial statements the Company identified a write down of assets for the fourth quarter resulting from unused capacity at its Hengdali facility, which is currently estimated to be $7.5 million.
On November 1, 2013, Defendant D.W. Dong abruptly resigned as a Director of the Company and a member of the Audit Committee. He was replaced by Mr. Shen Cheng Liang.
On November 13, 2013, the Company announced its financial results for the third quarter of 2013. In its announcement, the Company revealed a substantial asset write-down of property, plant and equipment.
On April 27, 2014, Mr. Stulginsky abruptly resigned as a Director of the Company and Chairman of the Audit Committee. The circumstances surrounding his abrupt departure would be revealed days later. On April 28, 2014, Defendant Su resigned as a Director of the Company. On May 1, 2014, NASDAQ announced the halt in trading of the common shares of China Ceramics. On the same day, the Company filed a notification on Form 12b-25 with the SEC of its inability to timely file its Annual Report on Form 20-F for the year ended December 31, 2013. The following day, the Company announced the delay in the filing of its annual report for the year ended December 31, 2013 and partially revealed the circumstances surrounding the delay, which includes the firing of its auditor, the hiring of a new auditing firm, and the re-auditing of its prior financial statements.
The Company also disclosed that it was notified by NASDAQ of its non-compliance with NASDAQ's continued listing requirement due to its inability to timely file its Annual Report on Form 20-F for the year ended December 31, 2013. In the same announcement, the Company also revealed a substantial write down of assets in the fourth quarter of 2013.
On May 9, 2014, the Company filed a Form 6-K with the SEC, which provided further details regarding its firing of Grant Thornton and the re-auditing of its prior financial statements for the years ended December 31, 2012 and 2011.
As of July 2, 2014, trading in the Company's stock remains halted, rendering the Company's stock illiquid and virtually worthless.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com .
Robert S. Willoughby Pomerantz LLP
