Robbins Umeda LLP Announces an Investigation of L&L Energy, Inc.
Robbins Umeda LLP, a shareholder rights litigation firm, has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at L&L Energy, Inc. (NASDAQ: LLEN). L&L Energy operates coal mining, washing, coking, and wholesale businesses in the remote Chinese provinces of Yunnan and Guizhou. The company was founded in 1995, and is headquartered in Seattle, Washington.
Robbins Umeda LLP’s investigation focuses on whether the directors and officers of L&L Energy harmed the company and investors by issuing materially false and misleading statements that have damaged the company’s value and reputation. On July 29, 2011, L&L Energy’s independent auditor submitted a report to L&L Energy’s board giving an adverse opinion on the company’s internal controls over financial reporting. The opinion indicated that there was a reasonable possibility that a material misstatement of the company’s financial statements would not be prevented or detected on a timely basis.
Furthermore, on August 2, 2011, a group of leading financial analysts released a report questioning the credibility of L&L Energy’s business success and highlighting a number of improper practices at the company. The report contained allegations that executives lied about L&L Energy’s ownership rights to certain coal mines in China and routinely exaggerated figures related to nets sales, net income, and the value of the company. On this news, shares of L&L Energy fell dramatically. After trading as high as $7.36 per share as recently as May 9, 2011, L&L Energy stock closed at just $4.00 per share on August 4, 2011.
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