Faruqi & Faruqi, LLP Announces Investigation of SinoTech Energy Limited (CTE)
Faruqi & Faruqi, LLP, a national law firm concentrating on investor rights, consumer rights and enforcement of federal antitrust laws, is investigating potential wrongdoing at SinoTech Energy Limited (“SinoTech” or the “Company”) (NASDAQ: CTE). Faruqi & Faruqi, LLP seeks to determine whether SinoTech violated federal securities laws in connection with statements made to the Company’s shareholders.
On August 16, 2011, research analyst Alfred Little published a report containing a number of shocking revelations including that: (1) the Company’s sole import agent is a shell company with no apparent operations; (2) the Company’s only chemical supplier is also an empty shell company, with very little or no revenues; (3) the Company’s five largest subcontracting customers appear to have minimal revenues and no verifiable operations; (4) the Company’s oil drilling technology is questionable, mispriced and uncompetitive; and (5) the Company’s financial results filed with the SEC were inconsistent with the financial filings made to the Chinese authorities.
On this news, shares of SinoTech stock dropped more than 42 percent from $4.05 per share to close on August 16, 2011, at $2.35 per share. Later on August 16, 2011, and following the publication of the report, NASDAQ halted trading in the Company’s ADSs, and stated that they would remain halted until the Company “fully satisfied NASDAQ’s request for additional information.”
If you purchased SinoTech securities between November 3, 2010 and August 16, 2011, and you would like to discuss your legal rights, contact us by calling Anthony Vozzolo or Richard W. Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com or firstname.lastname@example.org Faruqi & Faruqi, LLP also encourages anyone with information regarding SinoTech’s conduct during the period in question to contact the firm, including whistleblowers, former employees, shareholders and others.
Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330
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