ChinaCast Education Corporation ("ChinaCast" or the Company) is a for-profit, post-secondary education and e-learning services provider in the People's Republic of China.
According to the law firm press release, the Complaint asserts violations of the federal securities laws against ChinaCast and its officers and directors for issuing false and misleading information to investors about the Company’s true financial and business condition. Specifically, the Complaint alleges ChinaCast issued materially false and misleading financial statements during the Class Period because of undisclosed material weaknesses in the Company’s internal controls and the alleged wrongful transfer of $120 million in cash by CEO Chan from bank accounts of ChinaCast’s subsidiaries.
On August 22, 2012, the Court issued an Order consolidating cases, appointing lead Plaintiffs, and approving the selection of lead Counsel.
On September 17, 2012, the Plaintiffs filed their consolidated Complaint.
On December 7, 2012, the Court issued an order granting the Defendants' motion to dismiss with prejudice.
On December 10, 2012, lead Plaintiffs appealed to the United States Court of Appeals for the Ninth Circuit from the Minutes (In Chambers) Order of the Honorable John F. Walter granting the Defendants’ motion to dismiss. On October 23, 2015, the Court of Appeals issued an Opinion reversing the ruling of the District Court.
On November 8, 2016, judgment in the amount of $65,800,000 was entered against the Defendant.