Yangtze River Port and Logistics Limited
Yangtze River Port and Logistics Limited (YRIV) Accused of Fabricating Data
According to the complaint against the company for alleged violations of the Securities and Exchange Act of 1934 between February 2, 2016 and December 5, 2018, on December 6, 2018, Hindenburg Research published a report, stating that “evidence shows that YRIV’s claim to its main asset is likely fabricated.” Yangtze River Port and Logistics Limited (YRIV) stated that its logistics center was intended to be built on 1.2 million square meters of land leased from Chunfeng Village. However, according to the report, the total area of Chunfeng Village itself is only 610,000 meters. Further consultation showed that most of the area YRIV claimed to lease from Chunfeng Village belonged to other villages. YRIV further deceived investors by repeatedly claiming that they were not involved in any litigation that could have a materially adverse effect on its financial condition when, according to the report, “the precise opposite is in fact the case: the company’ operating subsidiary, Wuhan Newport, has so many claims and default judgments against it that it has been declared insolvent in China.” When the truth emerged, Yangtze shares fell $3.32, or over 28%, over the next two trading days.
Yangtze River Port and Logistics Limited (YRIV) Shareholders Have Legal Options
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