We are investigating Kingold Jewelry Inc. (KGJI) (“Kingold” or the “Company”) for potential violations of the federal securities laws.
On June 29, 2020, multiple news outlets reported that Kingold may have used counterfeit gold as collateral to secure loans from more than a dozen Chinese financial institutions, reporting that at least some of 83 tons of gold bars used as collateral turned out to be nothing but gilded copper. On this news, Kingold’s stock price fell $0.27 per share, or 24.11%, to close at $0.85 per share on June 29, 2020.