Here's another Lawsuit...I've always wondered why these lawsuits come in bunches...all in a span of a couple of days.
The Law Firm of Goldman Scarlato & Karon, P.C. Announces Class Action Lawsuit Against China Energy Savings Technology, Inc.
Tuesday May 2, 9:42 am ET
CONSHOHOCKEN, Pa.--(BUSINESS WIRE)--May 2, 2006--Goldman Scarlato & Karon, P.C., a law firm with offices in Pennsylvania and Ohio, announces that a lawsuit has been filed in the United States District Court for the Southern District of New York, on behalf of persons who purchased or otherwise acquired publicly traded securities of China Energy Savings Technology, Inc. ("China Energy" or the "Company") (NASDAQ: CESV - News) between April 21, 2005 and February 15, 2006, inclusive, (the "Class Period"). The lawsuit was filed against China Energy, Kwun-Luen Siu, Lawrence Lok, Yuen-Ming and Sun Li ("Defendants").
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If you are a member of this class and wish to view a copy of a complaint and join this class action, please e-mail us at info@gsk-law.com and request a copy of the complaint and a plaintiff certification. If you are a member of the Class, you may move the Court no later than June 30, 2006 to serve as a lead plaintiff for the Class. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. However, if you choose to remain an absent class member, unless and until a class is certified, you are not represented by counsel.
The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that Defendants failed to disclose: (1) that the Company's private placement offering in January 2006 was fraught with self dealing; and, (2) certain information involving the facts and circumstances about certain underlying transactions related to the rescission of certain Rule 144a legal opinions by the Company's prior securities counsel.
On January 17, 2006, the Company announced an underwriting agreement to raise $50 million through a private placement of Company stock. The very same day, China Energy announced that Mr. Sun Li resigned as Chairman and CEO of the Company. Upon his resignation, the Company immediately appointed Kwun Luen Siu Chairman of the Board 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 and in addition the Company also indicated that selling stockholders could sell up to 6.05 million shares. Shortly thereafter, on February 9, 2006, China Energy announced that it was delaying the filing of its SEC 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 announced that trading was halted in China Energy. The shares of the Company have been halted by NASDAQ ever since.
If you bought China Energy securities between April 21, 2005 and February 15, 2006, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (888) 753-2796 to speak with an advisor.
Contact:
The Law Firm of Goldman Scarlato & Karon, P.C.
Mark S. Goldman, Esq., 888-753-2796
