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Subaye, Inc.

Case Summary

Subaye, Inc. Securities Litigation

Case Summary

Case Status:    DISMISSED    
On or around 12/01/2011 (Court's order of dismissal)

Filing Date: April 15, 2011

According to a press release dated April 15, 2011, the Complaint asserts violations of the federal securities laws against Subaye and its officers and directors for issuing materially false and misleading financial statements to investors. On April 7, 2011 the Company disclosed its auditor, PricewaterhouseCoopers Hong Kong (“PwC”) resigned. PwC identified matters that may materially impact the fairness and reliability of Subaye’s quarterly financial information for the three months ended December 31, 2010 and may cause PwC to be unwilling to rely on managements’ representations.

PwC’s was unable to obtain information and supporting documentation to verify: (a) cash settlements from sales agents to Subaye, (b) the end customer subscriptions for the Company’s services and the services rendered to the end customers, (c) marketing and promotion activities performed by sales agents in return for fees paid to such agents and recorded as expenses of the Company. PwC also stated that Subaye provided insufficient explanations regarding commonalities between certain customers and vendors. Lastly, PwC could find no evidence of any business tax payments by the Company for services rendered in China.

Since April 7, 2011 trading in the Company’s stock has been halted, rendering the Company’s stock illiquid and causing investors further damage.

On September 16, 2011, the Court issued an Order appointing one of two competing Plaintiffs as Lead Plaintiff and approving of Lead Counsel.

On December 1, 2011, the Court issued an Order dismissing this action without prejudice pursuant to Fed. R. Civ. P. 41(a)(1).

Company & Securities Information

Defendant: Subaye, Inc.

COMPANY INFORMATION:

Sector: Services
Industry: Printing & Publishing
Headquarters: China

SECURITIES INFORMATION:

Ticker Symbol: SBAY
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.

First Identified Complaint

Jose Teran, et al. v. Subaye, Inc., et al.

COURT: S.D. New York
DOCKET #: 11-CV-02614
JUDGE: Hon.Naomi Reice Buchwald
DATE FILED: 04/15/2011
CLASS PERIOD START: 12/29/2009
CLASS PERIOD END: 04/07/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. The Rosen Law Firm P.A. (New York)
    275 Madison Avenue, 34th Floor, The Rosen Law Firm P.A. (New York), NY 10016
    (212) 686-1060 (212) 202-3827 ·
First Identified Complaint (FIC) Filings:
No Document Title Filing Date
1 Class Action Complaint for Violation of the Federal Securities Laws - Demand for Jury Trial 04/15/2011
2 U.S. District Court Civil Docket 09/16/2011
3 Memorandum and Order 09/16/2011
4 Order 12/01/2011
5 U.S. District Court Civil Docket 12/01/2012
 
 

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