Case Page

 

Case Status:    DISMISSED    
On or around 01/06/2012 (Notice of voluntarily dismissal)

Filing Date: March 29, 2011

According to a press release dated March 29, 2011, the Complaint charges NIVS and certain of the Company’s executive officers with violations of federal securities laws. NIVS is an integrated consumer electronics company that designs, manufactures, markets and sells intelligent audio and video products and mobile phones in China, Greater Asia, Europe and North America. The Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning NIVS’s business, operations and prospects were materially false and misleading. Specifically, the defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company had inaccurately recorded certain transactions; (2) that there were discrepancies in the Company's accounts receivables; (3) that the Company was engaged in improper acts involving the Company's accounting records and bank statements; (4) that, as a result, the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles; (5) that the Company lacked adequate internal controls; and (6) that, as a result of the foregoing, the Company's financial results were false and misleading at all relevant times.

On March 24, 2011, NYSE Regulation, Inc., a subsidiary of NYSE Euronext – the holding company that owns and operates the American Stock Exchange ("AMEX") – unexpectedly announced that it was implementing a trading halt in the common stock of NIVS and evaluating both the need for certain public disclosures and the overall suitability for continued listing of the Company's common stock.

On March 25, 2011, the Company filed a Current Report with the SEC on Form 8-K that disclosed that the Audit Committee of the Board of the Directors had approved the dismissal of NIVS's independent auditor, MaloneBailey LLP ("MaloneBailey"). Further, the Company indicated that on March 23, 2011, MaloneBailey had provided a letter to the Audit Committee, advising that the independent auditor had encountered issues and concerns that, in their view, required additional information and procedures, including the initiation of an independent investigation, in order to verify the accuracy of certain transactions and balances recorded on the Company's financial statements and records. Moreover, MaloneBailey informed the Company in a letter of resignation that they "were unable to rely on management's representations as they relate to previously issued financial statements and [they] could no longer support its audit opinion dated March 24, 2010, related to [their] audit of consolidated financial statements of the Company and its subsidiaries as of December 31, 2009, included in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2009." According to the Company, MaloneBailey "based its resignation on what it characterized illegal acts involving the Company's accounting records and bank statements and discrepancies in accounts receivable."

A similar, purported class action complaint has also been filed in the U.S. District Court for the Southern District of New York.

On July 7, 2011, the Court issued an order appointing Allan Lyons as lead plaintiff and approved Saxena White, P.A. as lead counsel and Goldberg LLP as local counsel. Further, the Court consolidated all current and future related actions under this docket.

On January 6, 2012, Lead Plaintiff filed a Notice voluntarily dismissing this action without prejudice.

COMPANY INFORMATION:

Sector: Consumer Cyclical
Industry: Audio & Video Equipment
Headquarters: China

SECURITIES INFORMATION:

Ticker Symbol: NIV
Company Market: New York SE
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: C.D. California
DOCKET #: 11-CV-02647
JUDGE: Hon. Manuel L. Real
DATE FILED: 03/29/2011
CLASS PERIOD START: 03/24/2010
CLASS PERIOD END: 03/25/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Glancy Binkow & Goldberg LLP (Los Angeles)
    1801 Ave. of the Stars, Suite 311, Glancy Binkow & Goldberg LLP (Los Angeles), CA 90067
    310.201.915 310. 201-916 · info@glancylaw.com
  2. Law Offices of Howard G. Smith
    3070 Bristol Pike, Suite 112, Law Offices of Howard G. Smith, PA 19020
    215.638.4847 215.638.4867 ·
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