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CASES

Tongxin International, Ltd.

Class Period: May 15, 2009 to Dec 14, 2010

Lead Plaintiff Deadline: Mar 4, 2011 + Deadline passed

Summary of Case:

A securities class action has been filed against Tongxin International, Ltd. (TXIC) ("Tongxin" or the "Company") on behalf of all securities purchasers from May 15, 2009 through December 14, 2009, inclusive ("Class Period"), in the United States District Court for the Eastern District of New York.

The complaint alleges that Tongxin and certain of its officers and directors breached its fiduciary duties by failing to disclose: (i) the Company's financial results, as reported, failed to properly account for certain related-transactions, and as a result, the Company would be unable to file its audited consolidated financial statements for the FY 2009; (ii) the Company would not have earnings growth, particularly in the South East Asian markets, or meet expected earnings guidance; (iii) the Company's top officers were conspiring to embezzle Company funds; (iv) the Company lacked adequate internal controls; and (v) the defendants lacked any reasonable basis for the positive statements about Tongxin's growth and future business prospects.

Starting from June 30, 2010, the Company slowly began to disclose problems previously hidden from the public, including their failure to timely file with the SEC its required audited consolidated financial statements, the delisting of the Company's stock on NASDAQ, the Company's lowered expected revenues for fiscal year 2010, removal of key executives, and the announcement of the Company's legal proceedings against their former Chief Executive Officer and Chief Financial Officer for embezzlement.

In a reaction to this news, shares of Tongxin common stock fell from prices trading as high as $6.16 per share to as low as $1.35 per share, representing a drop of more than 75%.

If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.