The Law Firm of Goldman Scarlato & Karon, P.C. Announces Class Action Lawsuit Against China Energy Savings Technology, Inc.
02 May 2006 - 11:42PM
Business Wire
Goldman Scarlato & Karon, P.C., a law firm with offices in
Pennsylvania and Ohio, announces that a lawsuit has been filed in
the United States District Court for the Southern District of New
York, on behalf of persons who purchased or otherwise acquired
publicly traded securities of China Energy Savings Technology, Inc.
("China Energy" or the "Company") (NASDAQ: CESV) between April 21,
2005 and February 15, 2006, inclusive, (the "Class Period"). The
lawsuit was filed against China Energy, Kwun-Luen Siu, Lawrence
Lok, Yuen-Ming and Sun Li ("Defendants"). If you are a member of
this class and wish to view a copy of a complaint and join this
class action, please e-mail us at info@gsk-law.com and request a
copy of the complaint and a plaintiff certification. If you are a
member of the Class, you may move the Court no later than June 30,
2006 to serve as a lead plaintiff for the Class. 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. However, if you choose to remain an
absent class member, unless and until a class is certified, you are
not represented by counsel. The complaint alleges that Defendants
violated Sections 10(b) and 20(a) of the Securities Exchange Act of
1934 and Rule 10b-5 promulgated thereunder. Specifically, the
complaint alleges that Defendants failed to disclose: (1) that the
Company's private placement offering in January 2006 was fraught
with self dealing; and, (2) certain information involving the facts
and circumstances about certain underlying transactions related to
the rescission of certain Rule 144a legal opinions by the Company's
prior securities counsel. On January 17, 2006, the Company
announced an underwriting agreement to raise $50 million through a
private placement of Company stock. The very same day, China Energy
announced that Mr. Sun Li resigned as Chairman and CEO of the
Company. Upon his resignation, the Company immediately appointed
Kwun Luen Siu Chairman of the Board and CEO. On January 20, 2006,
China Energy filed two registration statements indicating that the
Company could offer up to ten million shares of its common stock
and in addition the Company also indicated that selling
stockholders could sell up to 6.05 million shares. Shortly
thereafter, on February 9, 2006, China Energy announced that it was
delaying the filing of its SEC Form 10-Q for the quarter ended
December 31, 2005, due to the recent change in management. On
February 14, 2006, the Company filed its delayed Form 10-Q, which
revealed that the Company and its independent auditors were the
subject of an informal SEC inquiry. On February 15, 2006, NASDAQ
announced that trading was halted in China Energy. The shares of
the Company have been halted by NASDAQ ever since. If you bought
China Energy securities between April 21, 2005 and February 15,
2006, inclusive, and would like to obtain information about the
lawsuit, then you are invited to call (888) 753-2796 to speak with
an advisor.
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