Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Hongli Clean Energy Technologies Corp. (CETC)

NEW YORK, May 12, 2017 -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Hongli Clean Energy Technologies Corp. (“Hongli” or the “Company”) (Nasdaq:CETC) in the United States District Court for the Central District of California on behalf of a class consisting of investors who purchased or otherwise acquired Hongli stock on the open market from October 13, 2015 and April 7, 2017, inclusive (the “Class Period”), seeking to recover compensable damages caused by Defendants’ violations of the Securities Exchange Act of 1934.

The Complaint alleges that Hongli made false and/or misleading statements and/or failed to disclose that the Company did not properly record the impairment of its assets.  On April 7, 2017, NASDAQ halted trading of Hongli’s securities.

On April 21, 2017, Hongli revealed that it dismissed KSP Group, Inc. (“KSP”) as its independent auditor and stated that KSP had no disagreements with Hongli as to its accounting practices.  On April 26, 2017, Hongli disclosed that KSP believed a disagreement did exist at the time Hongli dismissed it.  KSP disagreed with the timing and manner in which Hongli valued a substantial amount of assets on its balance sheet.  Shares of Hongli last traded at $4.64 per share on April 7, 2017 and has been delisted from the NASDAQ exchange.

If you wish to serve as lead plaintiff, you must move the Court no later than July 7, 2017.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].

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