CNG Hit With Class Action Over SEC Nondisclosure

Law360, New York (September 3, 2010, 5:24 PM EDT) -- A putative class of China Natural Gas Inc. stockholders has accused the company and its executives of fraudulently omitting a $17.7 million bank loan from U.S. Securities and Exchange Commission filings, alleging the action caused the company’s stock to trade at artificially inflated levels for five months in 2010.

CNG deliberately failed to disclose the loan in SEC forms and other public documents, misleading investors about CNG’s financial health, according to a complaint lodged Aug. 26 in the U.S. District Court for the District of Delaware....
To view the full article, register now.