An investigation on behalf of investors in shares of Lihua International, Inc. (NASDAQ:LIWA) over possible Violations of Securities Laws by Lihua Intl and others was announced.

The investigation by a law firm focuses on possible shareholder claims based on potential violations of the federal securities laws. Specifically the investigation concerns whether Lihua International, Inc. or others may have violated securities laws by issuing a series of statements regarding its business, its prospects and its operations that were materially false and misleading at the time they were made.

Lihua International, Inc. reported an increase of more than ten times in its 12months Revenue over the past four years. Lihua Intl reported that its annual Total Revenue rose from $32.68million for 2007 to $370.53million for 2010. For the same time frame Lihua International reported an increase in its annual Net Income from $7.72million for 07 to $38.47million for 2010. It reported an increase in its first quarter Revenue of more than 100%, from $63.22million to $136.93million in the first quarter in 2011. Its quarterly Net Income increased from $8.86million last year to $12.51million this year.

Shares of Lihua International, Inc. (Public, NASDAQ:LIWA) increased during 2010 to as high as $12 per share and fell in June 2011 to as low as $5.62 per share.

On Monday August 1, 2011 NASDAQ: LIWA stocks fell from over $7 to $5.46 after a media report cited a report bya short seller that said Lihua International misrepresented itself to investors. Wyoming-based hedge fund Absaroka Capital Management LLC said in a report that concerns include illogical financial results and deals with Danyang Huaying Resource Recycling Ltd., which is majority owned by Chief Operating Officer Wang Yaying. Absaroka Capital Management LLC said that Lihua Intls management has engaged in excessive stock promotion, and the shares should be valued at $3 per share.