Ex-ShengdaTech CEO Blocking Fraud Probe, Suit Says

Law360, New York (August 23, 2011, 1:33 PM EDT) -- Bankrupt chemical maker ShengdaTech Inc. sued its largest shareholder and former CEO on Saturday in an effort to block his bid to appoint a new board member and stymie an investigation into financial irregularities that brought down the Chinese company.

Chen Xiangzhi, who is also the company's former president, and other ShengdaTech officers have continued to hinder a probe — first with O'Melveny & Myers LLP at the helm, and now led by Skadden Arps Slate Meagher & Flom LLP — into accounting and financial issues...
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