Crone Law Group Announces Dismissal of Securities Fraud Lawsuit against Its Client China North East Petroleum Holdings Limited.
San Francisco, October 16, 2011 — The Crone Law Group (the "Firm" or "CLG"), a corporate, securities and litigation law firm, announced today the issuance of a
ruling of the United States District Court for the Southern District of New York that granted a motion of its client, China North East Petroleum Holdings
Limited (the "Company" or "NEP") (NYSE Amex: NEP), to dismiss three consolidated securities class actions against NEP and certain of its current and former
officers and directors.
Led by senior litigation attorney Michael Coffino, CLG's litigation team (including attorney Jaime Santos and legal assistant Falyn Jackson) has represented NEP
and several of its directors and officers in the three consolidated class actions since they were filed in mid-2010.
After the Court consolidated the three actions and plaintiffs filed an amended consolidated complaint, the Firm filed a motion to dismiss the consolidated
action, arguing among other things, that the purported shareholder class had not suffered any economic loss. At the hearing on oral argument on May 12, 2011,
the Court requested supplemental briefing on the issue of economic loss. On October 6, 2011 the Court, accepting CLG's analysis, ruled that the lead plaintiff
had not suffered any economic loss and ordered that the case be dismissed against all defendants. The Clerk of the Court entered judgment of dismissal and closed
the case on October 11, 2011.
This victory comes on the heels of the dismissal the Firm obtained of three consolidated shareholder derivative action suits for the same client based on the same
circumstances as the consolidated class actions.
"We are proud to act for NEP in these matters. The dismissal of the securities class actions vindicates the contention of our client that the class actions lacked
merit. Disposing of both litigation matters for this client is a significant step for the Company and we are honored to have handled the matters for the Company
successfully," commented Mark Crone. Mr. Jingfu Li, CEO of China North East Petroleum commented: "We are most pleased to receive word of the Court's ruling. We
have worked with The Crone Law Group for more than 8 years, and like the work of their corporate department, the work of its litigation team has been first rate.
We very much appreciate their loyal and hard work."