Valve Co.'s False Merger Claims Dipped Stocks: Suit

Law360, New York (March 10, 2011, 10:24 PM EST) -- A shareholder launched a class action against China Valves Technology Inc. in New York Tuesday, alleging the company's claims about its acquisition of two companies led to a sharp decline in stock price that cost investors millions of dollars.

The suit, brought by lead plaintiff Elliot Greenburg in the U.S. District Court for the Southern District of New York, says China Valves made false and misleading statements that fraudulently inflated the company’s stock price.

The subsequent decline of China Valves' stock price caused significant losses and...
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