Chinese Cable Maker Hit With Suit Over Hedge Accounting

Law360, New York (June 21, 2011, 4:27 PM EDT) -- A Tennessee firefighters pension plan lodged a proposed class action Tuesday against Fushi Copperweld Inc., claiming the Chinese producer of bimetallic conductor products inflated its stock price by misstating earnings.

In its complaint, the North Port Firefighters' Pension — Local Option Plan claims Fushi inappropriately applied hedge accounting to a cross-currency interest rate swap derivative set up in April 2007 and misreported its net income in 2007, 2008 and 2009.

"After the above revelations seeped into the market, the company's shares were hammered by massive sales,"...
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