According to a press release dated July 15, 2011, the plaintiffs bring violations of Sections 10(b) and 20(a) against the defendants for allegedly false and misleading statements concerning the company’s operations, financial condition, and certain financial transactions.
On May 31, 2011, trading in the company’s stock was halted by the SEC. The reason code for the halt was T12, which indicates that trading was halted pending receipt of additional information requested by NASDAQ from the Company. Subsequently, on June 7, 2011, the company filed a statement on Form 8-K with the SEC indicating that it was in receipt of a letter, attached as an exhibit thereto, from two of the individual defendants announcing their immediate resignation from their positions with the company. These two individual defends previously served as members of the company’s three person Audit Committee.
The resignation letter indicated that the company received a SEC subpoena on March 26, 2011, and that the audit committee had attempted to undertake an independent internal investigation into certain issues raised by the SEC; the letter went on to levy a number of allegations against the company. Allegations included: (1) that the company’s senior management were uncooperative with the investigation and failed to pay necessary legal and other professional fees in a timely fashion; (2) that the same refused to provide documents to the independent investigators, including employee information and bank statements and confirmations; and (3) that the same failed to provide information regarding a 200 million RMB (approximately 31 million USD) transaction between the company and an entity of an apparent related party nature.
The Court issued an order consolidating case numbers 11-CV-22788 and 11-CV-22556 on August 31, 2011.
On November 1, 2011, the Court issued an order appointing lead plaintiffs and approving the selection of lead counsel.
On November 16, 2011, plaintiffs filed an amended consolidated complaint.
On May 22, 2012, the Court issued an Order dismissing certain defendants without prejudice.
On August 1, 2012, the Court issued an Order granting defendants' motions to dismiss without prejudice. Plaintiffs were given leave to amend their complaint. On August 15, 2012, the Plaintiffs filed their amended complaint.
On December 19, 2013, Final Judgment was entered in favor of certain Defendants. These Final Judgments were appealed by the Lead Plaintiffs on January 15, 2014.