Former Shareholder Files Lawsuit Against Yasheng Eco-Trade Corporation
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SAN DIEGO, Oct. 29, 2009 (GLOBE NEWSWIRE) -- A former Vortex Resources
Corporation, now known as Yasheng Eco-Trade Corporation (OTCBB:YASH),
shareholder has filed a civil action for Fraud, Negligent Misrepresentation,
Securities Fraud and violations of the California Business and Professions Codes
17200 (unfair Business Practices) and 17500 (False Advertising) against the
Company. The Complaint was filed by George Sharp in the San Diego County
Division of California Superior Court (Case No. 37-2009-00100574-CU-MC-CTL) on
October 19, 2009 and served upon the Defendant on October 26, 2009.
In his complaint, Mr. Sharp states that the Defendant deliberately deceived him
by issuing false press releases while neglecting to issue press releases about
materially significant events. By way of example, the complaint alleges that the
Company repeatedly issued misleading press releases indicating that
Vortex/Yasheng intended to repurchase its own stock from the market. Mr. Sharp
states that the Defendant's true intention was to reverse-split its common
shares, but did not announce that upcoming event in order to deflect negative
developments and keep the share price artificially inflated. The complaint
further alleges that the Defendant knew that reverse splits will predictably
cause a decrease in the market value of the stock. In order to illustrate the
deception, Mr. Sharp discussed Vortex's propensity to issue press releases on a
regular basis before and after the Board of Directors had already voted to
reverse-split the stock. Mr. Sharp stated, "The Company had a habit of
announcing every little purported 'development' but neglected to tell the public
that it was reverse-splitting the stock, which was a significant turn of events.
I would never have purchased Vortex stock had I known of their true intentions,
and they know it. That is why it was not announced."
Mr. Sharp states that he was damaged because he purchased Vortex stock two
months after the Company's Board of Directors had already voted on the
unannounced reverse-split. That vote came four days after a purported stock
repurchase plan was actually announced to the public. The reverse-split was
executed three months after the vote and more than a month after Mr. Sharp
purchased stock in Vortex.
Further information about this lawsuit and a copy of the complaint can be
obtained at the website: www.sharp-v-yasheng.info
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CONTACT: Clipper Corporate Partners, Inc.
George Sharp
(310) 498-4455
george@clippercp.com
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