SAN DIEGO, Oct. 29, 2009 (GLOBE NEWSWIRE) -- A former Vortex Resources Corporation, now known as Yasheng Eco-Trade Corporation (OTCBB:YASH), shareholder has filed a civil action for Fraud, Negligent Misrepresentation, Securities Fraud and violations of the California Business and Professions Codes 17200 (unfair Business Practices) and 17500 (False Advertising) against the Company. The Complaint was filed by George Sharp in the San Diego County Division of California Superior Court (Case No. 37-2009-00100574-CU-MC-CTL) on October 19, 2009 and served upon the Defendant on October 26, 2009.
In his complaint, Mr. Sharp states that the Defendant deliberately deceived him by issuing false press releases while neglecting to issue press releases about materially significant events. By way of example, the complaint alleges that the Company repeatedly issued misleading press releases indicating that Vortex/Yasheng intended to repurchase its own stock from the market. Mr. Sharp states that the Defendant's true intention was to reverse-split its common shares, but did not announce that upcoming event in order to deflect negative developments and keep the share price artificially inflated. The complaint further alleges that the Defendant knew that reverse splits will predictably cause a decrease in the market value of the stock. In order to illustrate the deception, Mr. Sharp discussed Vortex's propensity to issue press releases on a regular basis before and after the Board of Directors had already voted to reverse-split the stock. Mr. Sharp stated, "The Company had a habit of announcing every little purported 'development' but neglected to tell the public that it was reverse-splitting the stock, which was a significant turn of events. I would never have purchased Vortex stock had I known of their true intentions, and they know it. That is why it was not announced."
Mr. Sharp states that he was damaged because he purchased Vortex stock two months after the Company's Board of Directors had already voted on the unannounced reverse-split. That vote came four days after a purported stock repurchase plan was actually announced to the public. The reverse-split was executed three months after the vote and more than a month after Mr. Sharp purchased stock in Vortex.
Further information about this lawsuit and a copy of the complaint can be obtained at the website: www.sharp-v-yasheng.info