Longwei Petroleum Files Defamation Lawsuit in Federal Court in Response to the
Geo Investing Report
Longwei takes further steps to defend itself and protect shareholder value by
TAIYUAN CITY, China, March 25, 2013
TAIYUAN CITY, China, March 25, 2013 /PRNewswire/ --Longwei Petroleum
Investment Holding Ltd. (OTC Markets "LPIH") ("Longwei" or the "Company"), an
energy company engaged in the storage and distribution of finished petroleum
products in the People's Republic of China ("PRC"), announced that it has
filed a complaint (the "Complaint") on March 19, 2013 in the United States
District Court Eastern District of Pennsylvania (the "Federal Court") against
Defendants Geo Investing, LLC ("Geo") and Jon R. Carnes ("Carnes")
(collectively, the "Geo-Carnes Enterprise"), and Seeking Alpha Ltd. ("Seeking
Alpha"), (collectively, "Defendants").
Longwei alleges in the Complaint that on January 3, 2013, Defendants, acting
in concert, authored and/or published an article on the Company (the "Geo
Report"), which they knew contained numerous false and defamatory statements
about Longwei's business operations to directly discredit the Company's
business reputation and constituted libel per se.
Accordingly, as a direct result of the Defendants' commercial disparagement,
unlawful conspiracy, fraudulent conduct, ongoing conspiracy, RICO violations
through a pattern of racketeering activity and tortuous interference with
business relations, among other claims described in the Complaint (the
"Claims"), Longwei has suffered damages in an amount to be determined at trial
including, but not limited to, the loss of approximately $242 million in
market capitalization, the ceasing of its shares being traded on the NYSE MKT,
litigation costs resulting from a potential securities class action against
it, and other damages stemming from loss of various business relationships.
This is an action by Longwei, a public corporation, for defamation, fraud, and
RICO violations, among other things alleged in the Claims, against the
Defendants for damages caused by the Defendants' conspiracy to defame
Longwei's business as part of their fraudulent short-selling scheme to
severely decrease Longwei's stock price, while simultaneously "shorting"
Longwei's stock, to reap massive illicit gains at the expense of Longwei and
A copy of the filed Complaint can be found on the Company website at the
As previously stated, Longwei believes the Geo Report contains numerous errors
of facts, misleading speculations and malicious interpretations of events. The
Company and its legal counsel in the U.S. and the PRC, as well as its auditor
have reviewed the allegations. Longwei has taken the stepsto defend itself
and protect shareholder value by addressing the allegations and filing the
Claims in the Complaint seeking damages against the Defendants.
Additionally, Longwei was not notified by the New York Stock Exchange ("NYSE")
until after market hours on Friday March 22, 2013 that the NYSE had filed an
application on Form 25 with the Securities and Exchange Commission ("SEC") to
strike the Company's common stock from listing on the NYSE MKT. However, the
Company's stock began trading on the OTC Markets on Friday, March 22, 2013
under the symbol "LPIH" although the NYSE released a press release on March
22, 2013 stating that the delisting will become effective on April 1, 2013
unless postponed by the SEC.
About Longwei Petroleum Investment Holding Limited
Longwei Petroleum Investment Holding Limited is an energy company engaged in
the storage and distribution of finished petroleum products in the People's
Republic of China. The Company's oil and gas operations consist of
transporting, storing and selling finished petroleum products, entirely in the
PRC. The Company's headquarters are located in Taiyuan City, Shanxi Province.
The Company has a storage capacity for its products of 220,000 metric tons
("mt") located at three storage facilities within Shanxi: Taiyuan, Gujiao and
Huajie, which have an individual storage capacity of approximately 50,000mt,
70,000mt, and 100,000mt, respectively.The Company has the necessary licenses
to operate and sell petroleum products not only in Shanxi, but throughout the
entire PRC. The Company's storage tanks have the largest storage capacity of
any non-government operated entity in Shanxi.
The Company seeks to earn profits by selling its products at competitive
prices with timely delivery to transportation companies, coal mining
operations, power supply customers, large-scale gas stations and small,
independent gas stations. The Company also earns revenue from agency fees by
acting as a purchasing agent for other intermediaries in Shanxi, and through
limited sales of diesel and gasoline at two retail gas stations, each located
at the Company's Taiyuan and Gujiao facilities. The Company seeks to continue
to expand its customer base and distribution platform through the utilization
of its large storage capacity, which allows the Company the flexibility to
take advantage of pricing, supply and demand fluctuations in the marketplace.
Longwei was recently named to the Forbes list of "Asia's 200 Best Under a
Billion" from a universe of 15,000 companies.Forbes ranked the companies
based on sales growth, earnings growth and return on equity in the past 12
months and over three years.As was reported, Longwei's three-year track
record is 45% sales growth, 28% earnings per share growth and 28% return on
equity.The Forbes article can be found at:
For further information on Longwei, please visit
http://www.longweipetroleum.com. You may register to receive the Company's
future press releases on the website under 'Email Alert.'
Certain statements contained herein constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based on current expectations, estimates
and projections about Longwei's industry, management's beliefs and certain
assumptions made by management. Readers are cautioned that any such
forward-looking statements are not guarantees of future performance and are
subject to certain risks, uncertainties and assumptions that are difficult to
predict. Because such statements involve risks and uncertainties, the actual
results and performance of the Company may differ materially from the results
expressed or implied by such forward-looking statements. Given these
uncertainties, readers are cautioned not to place undue reliance on such
forward-looking statements. Longwei's operations are conducted in the PRC and,
accordingly, are subject to special considerations and significant risks not
typically associated with companies in North America and Western Europe. These
include risks associated with, among others, the political, economic and legal
environment and foreign currency exchange. The Company's results may be
adversely affected by changes in the political and social conditions in the
PRC and by changes in governmental policies with respect to laws and
regulations, anti-inflationary measures, currency conversion, remittances
abroad, and rates and methods of taxation. Other potential risks and
uncertainties include but are not limited to the ability to procure, properly
price, retain and successfully complete projects, and changes in products and
competition. Unless otherwise required by law, the Company also disclaims any
obligation to update its view of any such risks or uncertainties or to
announce publicly the result of any revisions to the forward-looking
statements made here. Readers should review carefully reports or documents the
Company files periodically with the Securities and Exchange Commission.
At the Company:
Michael Toups, Chief Financial Officer
Tel: U.S. Office +1-727-641-1357
SOURCE Longwei Petroleum Investment Holding Ltd.
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