China Energy Savings Technology, Inc. ("China Energy" or the Company) offers energy-savings products in China.

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.

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. This case was voluntarily dismissed by the Plaintiff on February 26, 2007.