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Kingold Jewelry, Inc. Class Action Lawsuit

Case Summary

Company Name
Kingold Jewelry, Inc.
Stock Symbol
KGJI
Class Period
March 15, 2018 to June 28, 2020
Court
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%.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

Class Period: March 15, 2018 - June 28, 2020
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