Lerach Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit Against China Energy Savings Technology, Inc.
19 Maggio 2006 - 12:15AM
Business Wire
Lerach Coughlin Stoia Geller Rudman & Robbins LLP ("Lerach
Coughlin") (http://www.lerachlaw.com/cases/chinaenergy/) today
announced that a class action has been commenced in the United
States District Court for the Southern District of New York on
behalf of purchasers of China Energy Savings Technology, Inc.
("China Energy") (NASDAQ:CESV) common stock during the period
between April 21, 2005 and February 15, 2006 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no
later than 60 days from May 1, 2006. If you wish to discuss this
action or have any questions concerning this notice or your rights
or interests, please contact plaintiff's counsel, William Lerach or
Darren Robbins of Lerach Coughlin at 800/449-4900 or 619/231-1058,
or via e-mail at wsl@lerachlaw.com. If you are a member of this
class, you can view a copy of the complaint as filed or join this
class action online at http://www.lerachlaw.com/cases/chinaenergy/.
Any member of the purported class may move the Court to serve as
lead plaintiff through counsel of their choice, or may choose to do
nothing and remain an absent class member. The complaint charges
China Energy and certain of its officers and directors with
violations of the Securities Exchange Act of 1934. China Energy
engages in the development, manufacture, sale, and distribution of
energy-saving products for use in commercial and industrial
settings in the People's Republic of China. The complaint alleges
that during the Class Period, defendants issued materially false
and misleading statements regarding the Company's business and
financial results. As a result of defendants' false statements,
China Energy stock traded at artificially inflated prices during
the Class Period. On February 15, 2006, after the market closed,
the NASDAQ announced that trading was halted in China Energy stock
for "additional information requested" from the Company at a last
price of $6.82. As of May 12, 2006, trading in China Energy's stock
remained halted. According to the complaint, the true facts, which
were known by the defendants but concealed from the investing
public during the Class Period, were as follows: (a) the Company's
accounting department suffered from material weaknesses and
deficiencies and lacked the necessary staff and resources to
perform its required functions; (b) contrary to representations
contained in the Company's SEC filings, the Company's internal
controls were inadequate and easily manipulated; (c) the Company
lacked effective internal controls in its financial reporting
process required to enable it to properly analyze and/or estimate
China Energy's future financial and operational performance; (d)
China Energy was improperly recognizing revenue associated with its
long-term energy-sharing service agreements by recognizing revenue
before it was earned and realizable; (e) China Energy's January
2006 private placement was fraught with self-dealing; and (f) China
Energy was experiencing inside and/or self dealing transactions in
the Company's stock by insiders, its executives and/or members of
its Board of Directors which could lead to trading of its stock
being halted by the NASDAQ. Plaintiff seeks to recover damages on
behalf of all purchasers of China Energy common stock during the
Class Period (the "Class"). The plaintiff is represented by Lerach
Coughlin, which has expertise in prosecuting investor class actions
and extensive experience in actions involving financial fraud.
Lerach Coughlin, a 180-lawyer firm with offices in San Diego, San
Francisco, Los Angeles, New York, Boca Raton, Washington, D.C.,
Houston, Philadelphia and Seattle, is active in major litigations
pending in federal and state courts throughout the United States
and has taken a leading role in many important actions on behalf of
defrauded investors, consumers, and companies, as well as victims
of human rights violations. Lerach Coughlin lawyers have been
responsible for more than $20 billion in aggregate recoveries. The
Lerach Coughlin Web site (http://www.lerachlaw.com) has more
information about the firm.
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