According to the Complaint, Nova Lifestyle. Inc. purports to design, manufacture, and sell residential and commercial furniture to middle and upper middle-income consumers worldwide.

The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Nova Lifestyle overstated its purported “strategic alliance” with Shanxi Wanginq to operate as lead designer and manufacturer for all furnishings in Shanxi Wanginq’s planned $460 million senior care center in China; (2) Nova Lifestyle inflated its reported sales in 2016 and 2017 with Shanxi Wangqing and Merlino Lewis LLP; and (3) as a result, Nova Lifestyle’s public statements were materially false and misleading at all relevant times.

On March 27, 2019, the Court issued an Order appointing Lead Plaintiffs and Lead Counsel. Lead Plaintiff filed an amended Complaint on June 18. Defendants filed a Motion to Dismiss the amended Complaint on August 2. On December 2, the Court issued an Order denying Defendants' Motion to Dismiss.

On June 22, 2021, Lead Plaintiffs notified the Court that the parties had reached a Settlement in principle. The parties entered into a Stipulation of Settlement on March 2, 2022. On March 24, 2023, the parties renewed the Stipulation of Settlement. The Court granted preliminary approval of the Settlement on July 10. On January 30, 2024, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.

On May 14, 2024, the Court approved distribution of the Settlement funds.