Case Page

 

Case Status:    SETTLED
On or around 03/28/2017 (Other)

Filing Date: March 18, 2011

According to a press release dated March 18, 2011, the complaint charges ShengdaTech and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The Company and its subsidiaries are primarily engaged in developing, manufacturing and marketing nano precipitated calcium carbonate (“NPCC”) products.

The complaint alleges that, during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and prospects. Specifically, defendants misrepresented and/or failed to disclose the following adverse facts: (a) that ShengdaTech was operating with material deficiencies in the system of internal control over its financial reporting; (b) that ShengdaTech’s financial statements, during at least 2010, were not fairly presented in conformity with U.S. GAAP and were materially false and misleading; and (c) that, based on the foregoing, defendants lacked a reasonable basis for their positive statements about ShengdaTech’s revenues, expenses, income, margins, markets, growth, average selling prices, and customers.

On March 15, 2011, the Company issued a press release announcing that it had appointed a special committee of the Board of Directors to investigate “potentially serious discrepancies and unexplained issues relating to the Company and its subsidiaries’ financial records identified by the Company’s auditors” in the course of their examination of ShengdaTech’s consolidated financial statements for the year ended December 31, 2010. The Company further announced that its audit committee had retained O’Melveny & Myers LLP as independent outside counsel, which had initiated an internal investigation, that the SEC had been notified about the commencement of the internal investigation, and that the Company would not file its 2010 Form 10-K in a timely manner. In response to this unexpected announcement, trading in the Company’s shares was suspended.

On October 15, 2012, the Plaintiffs filed their Consolidated Amended Complaint.

On January 17, 2013, the parties entered into a Stipulation voluntarily dismissing certain defendant from this action.

On August 6, 2013, the plaintiffs filed their Second Consolidated Amended Complaint.

On August 22, 2013, the Court issued an Opinion dismissing the complaint as to certain individual defendants.

On October 28, 2013, the plaintiffs filed their Third Consolidated Amended Complaint.

On July 1, 2014, the Court issued an Order denying the motion to dismiss of a certain defendant. On August 12, the Court did grant the motions to dismiss of other certain defendants, and dismissed them from this action.

Final approval of a Settlement was granted on September 25, 2015, and this case was dismissed with prejudice.

COMPANY INFORMATION:

Sector: Basic Materials
Industry: Chemical Manufacturing
Headquarters: China

SECURITIES INFORMATION:

Ticker Symbol: SDTH
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 #: 11-CV-01918
JUDGE: Hon.Thomas P. Griesa
DATE FILED: 03/18/2011
CLASS PERIOD START: 03/15/2010
CLASS PERIOD END: 03/15/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Dyer & Berens LLP
    303 East 17th Avenue, Suite 300, Dyer & Berens LLP, CO 80203
    303.861.1764 303.861.1764 ·
  2. Holzer Holzer & Fistel, LLC (Atlanta)
    200 Ashford Center North, Suite 300, Holzer Holzer & Fistel, LLC (Atlanta), GA 30338
    770.392.0090 770.392.0090 ·
  3. Robbins Geller Rudman & Dowd LLP (Melville)
    58 South Service Road, Suite 200, Robbins Geller Rudman & Dowd LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 11-CV-01918
JUDGE: Hon.Thomas P. Griesa
DATE FILED: 10/28/2013
CLASS PERIOD START: 05/06/2008
CLASS PERIOD END: 03/15/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Robbins Geller Rudman & Dowd LLP (Melville)
    58 South Service Road, Suite 200, Robbins Geller Rudman & Dowd LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
No Document Title Filing Date