According to the Complaint, China Auto Logistics Inc. ("China Auto") sells and trades in imported automobiles in the People’s Republic of China.

The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) China Auto failed to maintain adequate internal controls over identifying and reporting certain relationships and related transactions; and (2) as a result, Defendants’ public statements were materially false and misleading at all relevant times.

On September 12, 2018, the Court issued an Order appointing Lead Plaintiffs and Counsel. Lead Plaintiffs filed an amended Complaint on November 21. Defendants filed a Motion to Dismiss the amended Complaint on January 22, 2019. On August 31, 2020, the Court issued an Order denying Defendants' Motion to Dismiss.

Several individual Defendants filed a Motion to Dismiss the amended Complaint on May 14, 2020. On July 30, 2021, the Court issued an Order denying the individual Defendants' Motion to Dismiss.

Plaintiffs filed a request for default against the Company Issuer Defendant on November 24, 2020. On November 25, the Company Issuer Defendant notified the Court that they had filed for Chapter 7 bankruptcy in the United States Bankruptcy Court for the District of Nevada. The Court granted Plaintiffs' request for default on December 1 according to the Docket entry on that date.

On August 9, 2022, Lead Plaintiffs' Counsel notified the Court that the Lead Plaintiffs and one of the individual Defendants had entered into a Settlement Agreement and Mutual Release on July 21, 2022. Lead Plaintiffs requested that the Court enter an Order stating that the action was dismissed with prejudice as to the individual Defendant and without prejudice as to the remaining Defendants. On August 12, the Court granted Lead Plaintiffs' request.