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Case Status:    DISMISSED    
On or around 11/22/2006 (Notice of voluntarily dismissal)

Filing Date: May 01, 2006

On September 29, 2006, the Court entered the Order signed by U.S. District Judge Denny Chin granting the motion to consolidate all related actions. The Order further granted the motion of the Khan Group to be appointed lead plaintiffs and approved their selection of Labaton Sucharow & Rudoff LLP as lead counsel. On November 22, 2006, the Court entered the Order dismissing the action without prejudice in accordance with F.R.C.P.4(m), as to the individual defendants. The plaintiff confirmed the judge's order with a notice of voluntary dismissal on February 26, 2007.

The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements. Specifically, the Defendants failed to disclose: (i) that the Company's private placement offering in January 2006 was fraught with self dealing; and, (ii) certain information involving the circumstances of underlying transactions related to the rescission of certain Rule 144a legal opinions.

The complaint further alleges that on or around January 17, 2006, China Energy announced an underwriting agreement to raise $50 million through a private placement of Company stock. On the same day, the resignation of its Chairman and CEO was announced. The Company immediately appointed a Chairman 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. On February 9, 2006, China Energy announced that it was delaying the filing of its 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 halted trading of China Energy.

COMPANY INFORMATION:

Sector: Technology
Industry: Electronic Instruments & Controls
Headquarters: Hong Kong

SECURITIES INFORMATION:

Ticker Symbol: CESV
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. New York
DOCKET #: 06-CV-03308
JUDGE: Hon. Denny Chin
DATE FILED: 05/01/2006
CLASS PERIOD START: 04/21/2005
CLASS PERIOD END: 02/15/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Capretz & Associates
    5000 Birch Street, Suite 5000, Capretz & Associates, CA 92660-2151
    949.724.3000 949.724.3000 · Lawyers@Capretz.com
  2. Goldman Scarlato & Karon P.C.
    101 W. Elm Street, Suite 360, Goldman Scarlato & Karon P.C., PA 19428
    484.342.0700 484.342.0700 · info@gsk-law.com
  3. Labaton Sucharow & Rudoff LLP
    100 Park Avenue, 12th Floor, Labaton Sucharow & Rudoff LLP, NY 10017
    212.907.0700 212.818.0477 · info@labaton.com
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