NEW YORK, March 29, 2004 (PRIMEZONE) -- Bull & Lifshitz, LLP announced today that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of China Life Insurance Co. Limited (NYSE:LFC) ("China Life" or the "Company") publicly traded securities during the period between December 22, 2003 and February 3, 2004, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be obtained by request from the firm's website at http://www.nyclasslaw.com/infopackage.html.
The complaint charges China Life, Wang Xianzhang, Long Yongtu, Chau Takhay, Miao Fuchun, and Wu Yan, with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. More specifically, the Complaint alleges that defendants failed to disclose and indicate: (1) that China Life and/or its predecessor company had engaged in a huge financial fraud by misusing 5.4 billion yuan ($652 million) of funds; (2) that China Life and/or its predecessor company had engaged in criminal activities by making illegal and unauthorized loans, investments, and payments; (3) that at the time of its initial public offering ("IPO") the National Audit Office of the Peoples Republic of China ("CNO") had completed and/or was about to publish its report detailing this huge financial fraud; and (4) that defendants knew that this information would have a material impact on the share price of its $3 billion IPO.
On February 3, 2004, Bloomberg reported that the CNO had published its report detailing the massive fraud at China Life. In the report, the CNO stated that China Life had misused 5.4 billion yuan ($652 million) of funds, making illegal and unauthorized loans, investments, and payments. According to Bloomberg, the CNO's probe uncovered 28 criminal cases involving 489 million yuan. Additionally, the CNO provided a partial breakdown of more than 35 billion yuan in corruption and irregularities. More specifically, the CNO found that China Life offered illegal agency services and made unusually high insurance payments to the amount of 2.38 billion yuan. Moreover, the CNO reported that the Company used 2.5 billion yuan to make illegal investments and gave unauthorized loans. Government investigators also found private caches holding 31.79 million yuan that were set up by the Company. News of this shocked the market. Shares of China Life fell $2.13 per share, or 7.4%, to close at $26.67 per share on usually high trading volume on February 4, 2004.
If you bought China Life publicly traded securities between December 22, 2003 and February 3, 2004, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than May 17, 2004. If you are a member of this class, you can join this class action online at http://www.nyclasslaw.com/join.html. Any member of the purported class may move the Court to serve as lead plaintiff through this firm or other counsel of their choice, or may choose to do nothing and remain an absent class member.
Bull & Lifshitz, LLP is a national law firm that represents investors and consumers in class action and corporate governance litigation. It is one of the country's premiere firms in the area of securities fraud.
If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's website at www.nyclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca