China Energy Savings Technology (CESV)

[beigledog]

Schatz & Nobel, P.C. Announces Class Action Lawsuit Against China Energy Savings Technology, Inc. -- CESV
Monday May 1, 3:01 pm ET


HARTFORD, Conn., May 1, 2006 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of all persons who purchased or otherwise acquired the publicly traded securities of China Energy Savings Technology, Inc.(``China Energy'' or the ``Company'') (NasdaqNM:CESV - News) between April 21, 2005 and February 15, 2006, inclusive, (the ``Class Period'').
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The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements. Specifically, the Defendants failed to disclose: (i) that the Company's private placement offering in January 2006 was fraught with self dealing; and, (ii) certain information involving the circumstances of underlying transactions related to the rescission of certain Rule 144a legal opinions.

On January 17, 2006, China Energy announced an underwriting agreement to raise $50 million through a private placement of Company stock. On the same day, the resignation of its Chairman and CEO was announced. The Company immediately appointed Kwun Luen Siu Chairman and CEO. On January 20, 2006, China Energy filed two registration statements indicating that the Company could offer up to ten million shares of its common stock. On February 9, 2006, China Energy announced that it was delaying the filing of its Form 10-Q for the quarter ended December 31, 2005, due to the recent change in management. On February 14, 2006, the Company filed its delayed Form 10-Q, which revealed that the Company and its independent auditors were the subject of an informal SEC inquiry. On February 15, 2006, NASDAQ halted trading of China Energy.

If you are a member of the class, you may, no later than June 30, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).

While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at [phone], or by e-mail at [e-mail], or visit our website: http://www.snlaw.net



Contact:
Schatz & Nobel, P.C.
Wayne T. Boulton or Nancy A. Kulesa
[phone]
www.snlaw.net
[e-mail]