A federal judge in Richmond has temporarily restrained a Hong Kong textile firm from purchasing any more stock in the Dan River textile firm.

Dan River, Inc., one of Virginia's largest employers, filed suit last week against the Hong Kong company, Unitex Ltd., and its subsidiary, Mannip Ltd., claiming that they "engaged in a systematic, covert scheme to accumulate substantial holdings of Dan River stock" by quietly buying 6.9 percent of stock without appropriately filing disclosure statements with the Securities and Exchange Commission.

U.S. District Judge D. Dortch Warriner Friday granted Dan River's request to temporarily halt the purchase of any more stock until a hearing for a preliminary injunction scheduled for March 30 or until Unitex satisfactorily amends its disclosure statement to the SEC.

Warriner said the disclosure statement must be amended to include information concerning Unitex's financial sources, the directors of Mannip and Unitex's reasons for the purchase of stock.

Dan River claimed in its suit that the Hong Kong firm violated a section of the Securities and Exchange act which requires a company to file appropriate disclosure staements if it suddenly acquires 5 percent or more of another company's stock.

Dan River contended, in court papers, that Unitex failed to file a disclosure from last December when the Hong Kong firm first purchased stock. When the firm did file with the SEC on Feb. 9 Dan River claimed the filings did not disclose the identity and background of the owners of the Dan River stock acquired by Mannip and Unitex, didn't reveal the names of its finanders or the intent of the owners in purchasing the stock.

In its SEC filing, Unitex said, "While Mannip is not solely a passive investor in" Dan River "neither Mannip nor Unitex has any present intention to seek control of the company or to propose a merger or similar transaction with the company."

Unitex had said it invested more than $4 million to buy 333,700 shares of Dan River stock through Mannip. But later documents said that Mannip increased its purchases to 385,100 shares of stock.

Dan River, which produces clothing fabrics and home furnishings, employs about 10,000 people near Danville.