China Valves Technology, Inc. develops, manufactures, and markets metal valves for electricity, petroleum, chemical, water, gas and other industries.

According to a press release dated February 05, 2011, the Complaint asserts violations of the Securities Exchange Act against China Valves and its officers and directors for misrepresenting the nature, circumstances, and related party nature of the Company’s acquisitions of Able Delight (Changsha) Valve Co. and Shanghai Pudong Hanwei Valve Co., Ltd. The Complaint asserts that defendants concealed that both acquisitions involved payments to entities or persons that were related to management in violation of generally accepted accounting principles and SEC rules. The Complaint also alleges that Defendants materially overstated the financial condition and business prospects of the acquired companies. When the market learned of this adverse information, the price of China Valves stock dropped, damaging investors.

On June 29, 2011, the Court issued an order consolidating three separate actions, including the following docket numbers: 11 Civ. 0796 (LAK), 11 Civ. 1116 (LAK), 11 Civ. 1564 (LAK). Moreover, the Court ordered that Bristol Investment Fund, Ltd. serve as lead plaintiff over the Mallard Group because Bristol possesses the largest financial interest in the action. The Court also approved Federman & Sherwood and The Ball Law Firm LLP asl lead counsel.

On August 29, 2011, the lead plaintiffs filed a Consolidated Class Action Complaint. On September 12, 2012, the Court issued a Memorandum Opinion granting the defendants' motion to dismiss without prejudice. Plaintiffs were given leave to file an amended complaint. On September 26, 2012 the Plaintiffs filed their amended complaint. On October 21, 2013, the Court issued an Order granting in part and denying in part Defendants' motions to dismiss.

On April 28, 2014, the parties entered into an Agreement of Settlement. The Settlement was preliminarily approved on May 1. On September 2, a Notice was filed detailing an amendment to the Settlement Agreement. On September 30, the Court granted final approval of the settlement and entered Final Judgment.