Shareholder Class Action Filed Against China North East Petroleum Holdings Limited by the Law Firm of Barroway Topaz Kessler Meltzer & Check, LLP

RADNOR, Pa., July 9 /PRNewswire/ -- The following statement was issued today by the law firm of Barroway Topaz Kessler Meltzer & Check, LLP:

Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of purchasers of the securities of China North East Petroleum Holdings Limited (NYSE Amex: NEP) ("China North" or the "Company"), who purchased or otherwise acquired China North securities between August 14, 2009 and May 26, 2010, inclusive (the "Class Period").

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Barroway Topaz Kessler Meltzer & Check, LLP (Darren J. Check, Esq. or David M. Promisloff, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at [email protected].

The Complaint charges China North and certain of its officers and directors with violations of the Securities Exchange Act of 1934. China North is an independent, non-state-owned oil production company that engages in oil drilling project management including the exploration and the extraction of crude oil in proven oilfields in Northern China.

More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them:  (1) that a Company officer and a Company director engineered significant improper cash transfers between the Company's bank accounts and their personal accounts; (2) that the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles; (3) that the Company lacked adequate internal and financial controls; and (4) that, as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.  

On May 27, 2010, China North issued a press release disclosing that in 2009, a Company officer and a Company director had engineered significant improper cash transfers between bank accounts of the Company and their personal accounts.  The Company also disclosed that its Chief Executive Officer was placed on administrative leave and that he had stepped down as Chairman of the Board, both pending the outcome of the Company's forensic audit.  In addition, the Company announced that its Chief Financial Officer and a director had resigned.  As a result of this event and a serious of other adverse events, China North's stock has been halted and investors have suffered significant losses.  

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Barroway Topaz Kessler Meltzer & Check which prosecutes class actions in both state and federal courts throughout the country.  Barroway Topaz Kessler Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.

For more information about Barroway Topaz Kessler Meltzer & Check, or for additional information about participating in this action, please visit www.btkmc.com.

If you are a member of the class described above, you may, not later than August 10, 2010, move the Court to serve as lead plaintiff of the class, if you so choose.  A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation.  In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class.  Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.  Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.  

SOURCE Barroway Topaz Kessler Meltzer & Check, LLP