According to press release dated February 10, 2012, the complaint alleges that, during the Class Period, Defendants knew, or recklessly disregarded, that the Company's financial statements during the Class Period contained materially false and misleading statements because (i) the Company did not have loyal customers; (ii) the Company did not manufacture quality products; and (iii) there was no basis for the statements that the Company would continually receive orders from its customers or that the battery business will be profitable due to an outstanding battery quality and the strong distribution network. In addition, the Company's SEC filings, during the Class Period, were materially false and misleading because they failed to disclose that a significant portion of the Company's battery products were obsolete; that the quality of the Company's battery products had declined; that increased competition and counterfeit battery products were materially cutting into the Company's sales; and that, as a result of the foregoing, the Company's battery business had materially declined and the goodwill associated with the Company's battery business had become worthless.
On May 10, 2012, the Court issued an order of consolidation. The above-captioned securities fraud class actions pending before this Court are hereby consolidated for all purposes pursuant to Rule 42(a) of the Federal Rules of Civil Procedure. They will be collectively referred to as "In re New Energy Systems Group Securities Litigation". A Lead File is hereby established with the docket number 7:12-cv-
01041-ER for all proceedings of the Consolidated Action. The Court also appointed lead plaintiff and approved the selection of lead counsel.
On August 14, 2012, the plaintiffs filed their consolidated class action complaint.
On September 30, 2014, the Court issued a Memorandum Opinion granting defendants' motion to dismiss. This case was closed.