According to the law firm press release, the Complaint asserts violations of the securities laws against Qiao Xing and its present and former officers and directors for issuing false and misleading information to investors. Specifically, the Complaint alleges defendants failed to disclose that in June 2011 the Company’s then CEO and Chairman transferred Company funds to a bank account under his control.
On April 16, 2012 NASDAQ halted trading in Qiao Xing’s shares. On April 20, 2012 the Company announced the commencement of an internal investigation into the CEO's June 2011 fund transfers. The Complaint alleges that as a result of this adverse information, Qiao Xing’s stock price has dropped, damaging investors.
On June 15, 2012, the Plaintiffs filed an Amended Complaint.
On March 6, 2013, the Court issued an Order appointing lead plaintiff and approving the selection of lead counsel. On May 21, the lead plaintiffs filed their amended complaint.
On July 7, 2014, the Court granted Plaintiff's motion for default judgment due to Defendants failing to respond to the First Amended Complaint.