Case Page

 

Case Status:    SETTLED
On or around 01/06/2014 (Other)

Filing Date: April 25, 2011

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.

COMPANY INFORMATION:

Sector: Technology
Industry: Communications Equipment
Headquarters: China

SECURITIES INFORMATION:

Ticker Symbol: ZSTN
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: C.D. California
DOCKET #: 11-CV-03531
JUDGE: Hon. Gary A. Feess
DATE FILED: 04/25/2011
CLASS PERIOD START: 10/20/2009
CLASS PERIOD END: 04/21/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. The Rosen Law Firm, P.A.
    333 South Grand Avenue, 25th Floor, The Rosen Law Firm, P.A., CA 90071
    213.785.2610 213.226-4684 ·
No Document Title Filing Date
COURT: C.D. California
DOCKET #: 11-CV-03531
JUDGE: Hon. Gary A. Feess
DATE FILED: 09/28/2011
CLASS PERIOD START: 10/20/2009
CLASS PERIOD END: 04/21/2011
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
No Document Title Filing Date