CINCINNATI, April 27 /PRNewswire/ -- A class action lawsuit was filed by
the law firm of Strauss & Troy on April 13, 2004 on behalf of all persons who
purchased or acquired the securities of China Life Insurance Co. Limited
("China Life" or the "Company") (NYSE: LFC) between December 22, 2003 and
February 3, 2004, inclusive (the "Class Period") and who suffered damages
thereby. The action, case number 04-CV-2821, David Kammerer v. China Life
Insurance Co. Limited et al., is pending in the United States District Court
for the Southern District of New York.
The Complaint alleges that during the Class Period, China Life and certain
of its officers violated Sections 10(b) and 20(a) of the Securities Exchange
Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the
Complaint alleges that defendants failed to disclose: (1) that China Life
and/or its predecessor company had engaged in a huge financial fraud by
misusing 5.4 billion yuan ($652 million) of funds; (2) that China Life and/or
its predecessor company had engaged in criminal activities by making illegal
and unauthorized loans, investments and payments; (3) that at the time of its
initial public offering ("IPO") the National Audit Office of the Peoples
Republic of China ("CNO") had completed and/or was about to publish its report
detailing this huge financial fraud; and (4) that defendants knew that this
information would have a material impact on the share price of its $3 billion
IPO.
On February 3, 2004, Bloomberg reported that the CNO had published its
report detailing massive fraud at China Life. The report stated that China
Life had misused 5.4 billion yuan ($652 million) of funds, making illegal and
unauthorized loans, investments and payments. According to Bloomberg, the
CNO's probe uncovered 28 criminal cases involving 489 million yuan. More
specifically, the CNO found that China Life offered illegal agency services
and made unusually high insurance payments to the amount of 2.38 billion yuan.
The CNO reported that Company used 2.5 billion yuan to make illegal
investments and gave unauthorized loans. Government investigators also found
private caches holding 31.79 million yuan that were set up by the Company.
News of this shocked the market and shares of China Life fell $2.13 per share,
or 7.4% to close at $26.67 per share on usually high trading volume on
February 4, 2004.
Plaintiff seeks to recover damages on behalf of all individuals that
purchased China Life securities between December 22, 2003 and February 3,
2004. Plaintiffs are represented by the law firm of Strauss & Troy, a
Cincinnati, Ohio law firm, that has successfully represented shareholders in
national securities class actions. If you are a member of the class described
above you may, no later than May 17, 2004, move the court to serve as a lead
plaintiff. In order to serve as lead plaintiff, you must meet certain legal
requirements. If you wish to discuss this action, or have any questions
concerning this notice or your rights or interests with respect to this
matter, please contact Richard S. Wayne, Esq., or Joseph J. Braun, Esq.,
Strauss & Troy, 150 East Fourth Street, Cincinnati, Ohio 45202, 800-669-9341
or (513) 621-2120 or by e-mail at rswayne@strauss-troy.com.
SOURCE Strauss & Troy
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CONTACT:
Richard S. Wayne, Esq.,
rswayne@strauss-troy.com, or Joseph J. Braun, Esq.,
+1-800-669-9341, or +1-513-621-2120, both of Strauss & Troy
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