Sino Clean Energy Inc. is primarily in the business of producing and distributing coal-water slurry fuel in China.

According to the Complaint filed on May 06, 2011, throughout the Class Period, Defendants made materially false and misleading statements about the Company by vastly overstating the Company's revenues and operations.

On April 28, analyst Alfred Little published a report which included more detailed factual allegations and Chinese tax filings allegedly showing that the Company had no or nearly no operations.

When the Company's true financial condition was revealed, the Company's stock price fell. Between April 25 and April 28, the Company's stock price fell from $4.12 per share to $2.47 per share, more than 40%, damaging investors.

Defendants replied with a detailed letter on May 3, 2011. The letter invited shareholders to view security camera footage of its factories in operation. The Company's stock price rose dramatically.

The very next day, Alfred Little showed that the footage was fabricated. The footage showed rain. During the period in which he Company claimed the footage was shot, there had been no rain.

The Company was caught red handed, and the Company 's stock price fell again to close at $2.59 on very heavy volume on May 5, 2011.

On August 8, 2011, the Court appointed the lead Plaintiff and approved of Counsel for the case.

On September 8, 2011, the lead Plaintiff filed an amended Complaint.

On January 30, 2012, the Court granted Defendant's motion to dismiss. Plaintiff's claims were dismissed with leave to amend.

On March 5, 2012, the Plaintiffs filed a second amended class action Complaint. Defendants filed their motion to dismiss on April 20, 2012.

On June 4, 2012, the Court issued an order denying Defendants' motion to dismiss.

On January 27, 2013, the parties entered into a Stipulation of Settlement. This Settlement was preliminarily approved by the Court on March 13.

On July 9, 2013, the Court issued an order approving the Settlement and dismissing this action with prejudice. The Court also awarded attorneys' fees and expenses.

On August 9, 2013, a Class Member filed a notice appealing the Settlement. The appeal was voluntarily dismissed on February 3, 2014.