Kingold Jewelry, Inc. Class Action Lawsuit
- Company Name
- Kingold Jewelry, Inc.
- Stock Symbol
- Class Period
- March 15, 2018 to June 28, 2020
- Eastern District of New York
The Kingold Jewelry, Inc. class action lawsuit charges Kingold Jewelry and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Kingold Jewelry securities between March 15, 2018 and June 28, 2020, inclusive (the “Class Period”). The Kingold Jewelry class action lawsuit was commenced on June 30, 2020 in the Eastern District of New York and is captioned Chitturi v. Kingold Jewelry, Inc., No. 20-cv-02886.
Kingold Jewelry designs, manufactures, and sells 24-karat gold jewelry and Chinese ornaments in the People’s Republic of China.
The Kingold Jewelry class action lawsuit alleges that defendants made materially false and/or misleading statements, as well as failed to disclose that: (1) Kingold Jewelry used fake gold as collateral to fraudulently secure loans; (2) consequently, Kingold Jewelry would face creditor lawsuits and be delisted from the Shanghai Gold Exchange; and (3) as a result, defendants’ statements about Kingold Jewelry’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On June 29, 2020, Caixin Global published an article entitled “Cover Story: The Mystery of $2 Billion of Loans Backed by Fake Gold.” The article stated, among other things, that Kingold Jewelry had used gold bars that were actually gilded copper as collateral in loans and was now facing lawsuits as a result, and that Kingold Jewelry had been delisted from the Shanghai Gold Exchange. On this news, shares of Kingold Jewelry stock fell more than 24%.
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