ZST Digital Networks, Inc. ("ZST Digital" or the Company) is a Chinese company that supplies digital and optical network equipment.

According to a press release dated April 25, 2011, the Complaint asserts violations of the federal securities laws against ZST Digital and its officers, directors, and underwriters for issuing materially false and misleading information in the Company's offering documents and in SEC filings. On April 21, 2011 a news report was published by a market analyst revealing a number of red flags of potential fraud at ZST Digital. Namely, in connection with the Company's fiscal 2009 and 2008 financial results, the report states that "SEC filings report revenues hundreds of times of what is reported" to the Chinese regulators and the filings show that the Company "paid zero tax in China, but reported substantial amounts to the SEC." The report also identifies a number of other allegations indicating that the Company may have misled investors about its customers. When this adverse information entered the market, the price of the Company's securities fell, damaging investors.

On September 28, 2011, the lead Plaintiff filed an amended Complaint for violations for Sections 10(b) and 20(a) of the Exchange Act.

On February 14, 2012, the Court issued an order granting in part and denying in part Defendants' motions to dismiss. On March 9, 2012, the Plaintiffs filed an amended Complaint.

On August 7, 2012, the Court issued an order granting in part and denying in part Defendants' motions to dismiss.

On August 20, 2012, a Stipulation was entered into the Court's docket voluntarily dismissing claims against certain individual Defendants.

On November 14, 2012, the Court issued an order staying all proceedings pending the submission to the Court of a motion for preliminary approval of the settlement.

On February 1, 2013, the parties entered into a Stipulation of Settlement. This Settlement was preliminarily approved by the Court on March 27.

On August 5, 2013, the Court issued an order granting final approval of the proposed Settlement, and awarded attorneys' fees and expenses.