China Energy Savings Technology (CESV)

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Shareholder Class Action Filed Against China Energy Savings Technology, Inc. by the Law Firm of Schiffrin & Barroway, LLP
Tuesday May 9, 7:00 pm ET


RADNOR, Pa., May 9 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of all securities purchasers of China Energy Savings Technology, Inc. (Nasdaq: CESV - News; "China Energy" or the "Company") between April 21, 2005 and February 15, 2006, inclusive (the "Class Period").

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at [e-mail].

The Complaint charges China Energy and certain of its officers and directors with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that defendants allowed Company insiders to self-deal in the Company's January 2006 private placement; (2) that China Energy failed to comply with SEC rules regarding limitations on sales of restricted stock; and (3) that as a result of this failure to comply with SEC rules, trading of China Energy's stock would be halted by NASDAQ.

On April 20, 2005, China Energy announced that the Company's stock would begin trading on NASDAQ on April 21, 2005. Shares of the Company's common stock would continue trading under the ticker symbol "CESV." The listing application was approved by NASDAQ on April 13, 2005. On February 15, 2006, NASDAQ announced that trading in shares of China Energy was halted at 3:30 p.m., EST, for "additional information requested" from the Company at a last price of $6.82. On March 22, 2006, China Energy announced that NASDAQ's request for information involved the facts and circumstances regarding the underlying transactions related to the rescission of certain Rule 144 legal opinions by the Company's prior securities counsel who resigned in February 2006, as well as certain other matters related to the Company's issuance of securities. The Company reported that it retained new securities counsel and was cooperating with NASDAQ in an effort to resolve any questions or issues raised by NASDAQ in order to resume trading as soon as possible. As of the date of filing of the Complaint, China Energy stock is still halted from trading. No indication has been given as to when, if ever, the Company's stock will resume trading.

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com.

If you are a member of the class described above, you may, not later than June 30, 2006, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action.


CONTACT: Schiffrin & Barroway, LLP
Darren J. Check, Esq.
Richard A. Maniskas, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll-free) or 1-610-667-7706
Or by e-mail at [e-mail]