L&L Energy Shareholder Launches Stock Fraud Action

Law360, New York (August 29, 2011, 1:25 PM EDT) -- L&L Energy Inc. was hit Friday with a class action in Washington state alleging the company inflated its stock price by overstating its revenue and overvaluing its assets.

Plaintiff Jeff Mills claims L&L grossly overstated its revenue and profit in filings with the U.S. Securities and Exchange Commission from 2009 to 2011, and misled investors with overly optimistic public statements. When shareholders learned of L&L's alleged misstatements, the company's stock price plummeted, according to the suit.

The company and its executives "engaged in acts, practices and...
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