Xinrong Zhuo, Chairman and CEO of Pingtan Marine Enterprise Ltd. (Photo: Pingtan)
American court dismisses putative class action suit against Pingtan
Friday, August 26, 2016, 02:50 (GMT + 9)
A Federal Court in New York has dismissed a putative federal securities class action filed against global fishing company Pingtan Marine Enterprise Ltd. (PME), its officers and directors in January 2015.
The plaintiffs filed the putative securities class action alleging that the company had falsely represented in its securities filings that it received profits from its wholly-owned subsidiary based in China.
The complaint alleged that this was materially misleading, and asserted claims against the company, who filed a motion to dismiss the complaint on various grounds, including that its securities filings were not materially misleading and the complaint did not allege loss causation.
The Court in New York ruled the plaintiffs failed to identify a material misrepresentation or omission and failed to plausibly allege loss causation against the Company, and dismissed all claims against the Company, its directors and officers on July 19, 2016.
"We are pleased with the Court's decision which makes it clear that Pingtan was not at fault. We believe this marks a turning point for our Management as we are able to focus more on developing and expanding our operations," expressed Xinrong Zhuo, Chairman and Chief Executive Officer of the company.
PGM is a global fishing company engaging in ocean fishing through its wholly-owned subsidiary, Fujian Provincial Pingtan County Ocean Fishing Group Co., Ltd., or Pingtan Fishing.
This subsidiary primarily engages in ocean fishing with many of its self-owned vessels operating within the Indian Exclusive Economic Zone and the Arafura Sea of Indonesia.