Underwriters Could Be Targeted Over Longtop Collapse

Law360, New York (August 30, 2011, 7:25 PM EDT) -- As the legal woes surrounding Longtop Financial Technologies Ltd. continue to mount, experts say the Wall Street banks that helped underwrite the Chinese software company's initial public offering could find themselves in the crosshairs for failing to call into question the financials prior to a blistering April report.

On Monday, Longtop CEO Wai Chau Lin revealed in a filing with the U.S. Securities and Exchange Commission that the Xiamen, China-based company had received a Wells Notice days earlier, generally a precursor to the agency filing suit....
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