SinoTech Wins Initial Nod For $20M Deal To End IPO Suit

Law360, Los Angeles (May 16, 2013, 10:27 PM EDT) -- A New York federal judge on Thursday granted preliminary approval of a $20 million settlement in a class action alleging that SinoTech Energy Ltd. misled shareholders ahead of its $180 million initial public offering in 2010 and that its underwriters looked the other way.

The plaintiffs claimed that SinoTech was a shell company with little or no income and that UBS AG, Citigroup Global Markets Inc., Lazard Capital Markets LLC, accounting firm Grant Thornton LLP and others knew its executives were making exaggerated financial claims. The...
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