On April 30, 2014, the Board of Directors of Lihua International, Inc. (“Lihua”) (NASDAQ: LIWA) issued a press release after the Company’s stock price collapsed by over 50% amid allegations that the Company’s CEO and Chairman of the Company’s Board “may have diverted or attempted to divert Company assets and as a result may have been the subject of action by local law enforcement.” According to the release, the Board’s Audit Committee is “taking steps to determine the facts and will take appropriate action. If the allegations prove true, the Company’s financial statements may contain material misstatements.”
NASDAQ halted trading in the Company’s stock at 11:08:05 a.m. Eastern Time on April 30, 2014. NASDAQ later announced that the trading halt status in Lihua was changed to “additional information requested” from the company. According to the release, trading will remain halted until Lihua has fully satisfied NASDAQ’s request for additional information.