Orient Paper Pays $2M To Wrap Up Shareholder Suit

Law360, New York (June 21, 2012, 11:25 PM EDT) -- China-based Orient Paper Inc. on Thursday said it would pay $2 million to settle a shareholder class action in California federal court alleging the company, which entered the U.S. market through a reverse merger, misreported financial figures and artificially inflated its stock price.

The settlement ends claims against the company and several of its executives filed by shareholder Mark Henning, who accused Orient of overstating its fiscal year 2008 revenue by 2,700 percent, which led to an artificially inflated share price that reached $15 per share,...
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