Investors Sue China Natural Gas Board Over Chair's Misconduct

Law360, Wilmington (May 23, 2012, 3:47 PM EDT) -- Three shareholders sued China Natural Gas Inc.'s board in Delaware court on Tuesday for allegedly failing to curb financial misconduct by Chairman Qinan Ji, including $14.3 million in company loans to Ji's family that have drawn fire from the U.S. Securities and Exchange Commission.

Haitham Kousa and two other investors said the "pattern of self-dealing and financial impropriety" at the company under Ji’s watch has sent its stock tumbling by 85 percent and prompted the delisting of its shares from the Nasdaq stock exchange. The plaintiffs...
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