Steelmaker sued for rare porcelain transaction
Specialty steelmaker China Gerui Advanced Materials Group Ltd has been sued by an investor for spending more than $230 million on antique porcelain and the share price decline that followed. Chief Executive OfficerMingwang Lu announced the purchase of the collection, which he described as a rare set dating back to the SongDynasty (960-1279), as a good investment. An investor who sued the company in federal court inNewYork onWednesday did not see it that way. When the company disclosed Sept 4 that it spent $234 million of unrestricted cash reserves to acquire a collection that it valued at $905 million, China Gerui did not reveal who it bought the porcelain from or where it is stored, whether it is insured or even whether it has been authenticated, according to the complaint filed by shareholder Aram Pehlivanian.