Telestone Technologies Corporation ("Telestone") provides wireless communications equipment in the People's Republic of China.

According to the law firm press release, the lawsuit alleges throughout the Class Period, Telestone earned almost all of its revenues from sales to the three largest Chinese telecommunications providers – China Unicom, China Mobile, and China Telecom – the so-called Big 3. In fact, Telestone only collected a small fraction of its purported sales to the Big 3, and internally determined both that the Big 3 were routinely breaching their contractual obligations to Telestone and that there was little Telestone could do about it. Revenues from sales to the Big 3 were thus not reasonably certain to be collectable, and should not have been recognized. The lawsuit alleges that the market gradually learned that there may have been an issue with Telestone’s revenues when its accounts receivable ballooned, leading to stock drops from $2.48 to $2.01, or 19.0%, on May 15, 2012, $1.62 to $1.38, or 14.8%, on November 19, 2012, and from $0.84 to $0.30, or 64.2%, following resumption of trading after a trading halt on June 3, 2013.

On January 19, 2016, all claims against issuer Defendant and certain individual Defendants were dismissed due to an inability to serve them.

On February 24, 2017, the Plaintiffs and Auditor Defendant entered into a Stipulation of Settlement. The Settlement was preliminarily approved by the Court on September 25. On March 6, 2018, the Court issued Orders approving the Class Action Settlement and awarding Attorneys' Fees. The Order for Attorneys' Fees was amended on March 9. On August 20, 2019, the Court issued an Order approving distribution of the net Settlement fund.