Corruption Allegations Against Chinese Company Spawn NY Shareholder Litigation

A client alert from Morrison & Foerster sees a lesson to be drawn from a shareholder class action filed against a China-based company, one that is listed on a U.S. exchange. Officials of PetroChina Company Ltd. are being investigated for corruption by Chinese officials, and the lawsuit, filed in the Southern District of New York, makes the classic plaintiff case: that the alleged corruption renders several recent company disclosures false and misleading.