Seattle-based L&L Energy said Friday it has entered a plea of not guilty to federal charges of securities fraud.

L&L, which operates coal mines in China, said in a regulatory filing that the indictment of the company “will have a material negative impact on its business, financial condition, and results of operations.”

Federal prosecutors in early May added the charges against the company to their previous indictment of L&L’s founder and former CEO, Dickson Lee. Lee has pleaded not guilty.

The Securities and Exchange Commission is separately pursuing civil fraud charges against both Lee and L&L.

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Both cases allege that Lee filed false regulatory documents by saying a certain person served as chief financial officer and oversaw the company’s financial statements in 2008 and 2009, when that person was not working for the company at all.

Those filings enabled L&L to be listed on Nasdaq, which delisted the company last fall after questions about its finances were raised by short sellers.