CASES
ShengdaTech, Inc.
Class Period: Mar 15, 2010 to Mar 15, 2011
Lead Plaintiff Deadline: May 17, 2011 + Deadline passed
Summary of Case:
A securities class action has been filed against ShengdaTech, Inc. ("ShengdaTech" or the "Company") on behalf of all purchasers of the common stock of ShengdaTech, Inc. from March 04, 2010 through March 10, 2011. This case has been filed in the United States District Court of USDC - New York (Southern).
The Complaint alleges as follows: During the Class Period, defendants issued materially false and misleading statements regarding ShengdaTech, Inc.'s ("ShengdaTech" or the "Company") business and prospects. Specifically, defendants misrepresented and/or failed to disclose the following adverse facts: (a) that ShengdaTech was operating with material deficiencies in the system of internal control over its financial reporting; (b) that ShengdaTech's financial statements, during at least 2010, were not fairly presented in conformity with U.S. GAAP and were materially false and misleading; and (c) that, based on the foregoing, defendants lacked a reasonable basis for their positive statements about ShengdaTech's revenues, expenses, income, margins, markets, growth, average selling prices, and customers.
On March 15, 2011, the Company issued a press release announcing that it had appointed a special committee of the Board of Directors to investigate "potentially serious discrepancies and unexplained issues relating to the Company and its subsidiaries' financial records identified by the Company's auditors" in the course of their examination of ShengdaTech's consolidated financial statements for the year ended December 31, 2010. The Company further announced that its audit committee had retained O'Melveny & Myers LLP as independent outside counsel, which had initiated an internal investigation, that the SEC had been notified about the commencement of the internal investigation, and that the Company would not file its 2010 Form 10-K in a timely manner. In response to this unexpected announcement, trading in the Company's shares was suspended.
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.