China North East Exits Embezzlement Suit For $2.5M

Law360, New York (August 20, 2013, 3:54 PM EDT) -- China North East Petroleum Holdings Ltd. has agreed to pay $2.5 million to settle a proposed securities class action accusing it of improper accounting and embezzlement, the company said in a filing in New York federal court Monday.

The settlement ends the consolidated class action brought in 2010 claiming the company's improper accounting tactics led to an overstatement of its net profit for 2008, and the first three quarters of 2009 by $36 million.

"The settling parties reached the proposed settlement after protracted, arm's-length negotiations and...
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