WILMINGTON, Del., May 29, 2014 (GLOBE NEWSWIRE) -- Andrews & Springer LLC, a boutique securities class action law firm focused on representing shareholders nationwide, is investigating potential breach of fiduciary duty claims against the Board of Directors of Kingold Jewelry, Inc. ("Kingold" or the "Company").
An article published by Seeking Alpha on Friday, April 4, 2014 has raised several red flags regarding Kingold's accounting and management practices. The article reports that in the fourth quarter of 2013, Kingold's management entered into a $52.4 million loan with a related party without receiving approval from the Company's Board of Directors. Among other things, the Seeking Alpha article also identifies red flags with the Company's growth of inventory and continuing low level of cash. The article also discusses the Company's questionable purchase of land rights in Wuhan, China with the intent to develop an "Industrial Park." After this article was disclosed to the public, Kingold's stock price fell 13% (roughly $0.21 per share) on Monday April 7, 2014.
Given this information, Andrews & Springer LLC is preparing a class action lawsuit as a result. If you owned shares of Kingold prior to April 4, 2014 and want to receive additional information and protect your investments free of charge, please visit us at http://www.andrewsspringer.com/cases-investigations/kingold or contact Craig J. Springer, Esq. at firstname.lastname@example.org, or call toll free at 1-800-423-6013. You may also follow us on LinkedIn – www.linkedin.com/company/andrews-&-springer-llc, Twitter – www.twitter.com/AndrewsSpringer or Facebook - www.facebook.com/AndrewsSpringer for future updates.
Andrews & Springer is a boutique securities class action law firm representing shareholders nationwide who are victims of securities fraud, breaches of fiduciary duty or corporate misconduct. Having formerly defended some of the largest financial institutions in the world, our founding members use their valuable knowledge, experience, and superior skill for the sole purpose of achieving positive results for investors. These traits are the hallmarks of our innovative approach to each case our Firm decides to prosecute. For more information please visit our website at www.andrewsspringer.com. This notice may constitute Attorney Advertising.
Source:Andrews & Springer LLC