Puda Coal, Inc.

Lead Plaintiff Deadline: 06/12/11

Date filed: 04/19/11

Class period: September 15, 2009 through April 08, 2011

Court: Southern District of New York

NASDAQ:

NYSE: PUDA

On April 14, 2011, a securities class action complaint was filed in the United States District Court for the Southern District of New York against Puda Coal, Inc. (“Puda Coal” or the “Company”) and certain of its executive officers, alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and rule 10b-5 promulgated thereunder, during the relevant time period of November 13, 2009 through April 11, 2011. On April 19, 2011, a subsequent complaint was filed alleging identical claims during the extended class period of September 15, 2009 through April 08, 2011.

Puda Coal, based in Taiyuan, China, is a supplier of high-grade metallurgical coking coal to the industrial sector in China. As alleged in the complaints, defendants failed to disclose material adverse facts about the Company’s true financial condition, business, and prospects throughout the class period, including that: (i) prior to the beginning of the class period, defendant Ming Zhao (Chairman of Puda Coal) and certain other individual defendants fraudulently transferred Puda Coal’s ownership interest in key Company assets to himself, including the Company’s sole operating subsidiary, Shanxi Coal; (ii) Puda Coal was nothing more than a shell company during the class period; (iii) Puda Coal’s reported operating results and financial condition were materially overstated; (iv) Puda Coal’s financial statements were not presented in conformity with U.S. Generally Accepted Accounting Principles; (v) Puda Coal was operating with material deficiencies in its internal control over financial reporting; and (vi) based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company, its prospects and growth.

On April 08, 2011, a short-seller by the name of Alfred Little published an article on Puda Coal entitled “Puda Coal Chairman Secretly Sold Half the Company and Pledged the Other Half to Chinese PE Investors,” which contained allegations regarding improper share transactions by Zhao. That same day, the Company issued a press release announcing that it was currently reviewing the allegations. On this news, shares of the Company’s stock declined more than 34%, or $3.10 per share, to close at $6.00 per share on extremely heavy trading volume.

On April 11, 2011, before the market opened, Puda Coal issued a press release announcing the commencement of an investigation into the allegations and admitting that it had already found evidence of transfers by Zhao inconsistent with its public securities filings, and indicating that Zhao was taking a leave of absence immediately as Chairman of the Board of the Company. Since the April 11, 2011 disclosure, Puda Coal’s stock continues to be halted by the New York Stock Exchange rendering it effectively worthless to its shareholders who are unable to sell the Company’s stock.

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