NIVS IntelliMedia Technology Group, Inc.
Class Period: Mar 24, 2010 to Mar 25, 2011
Lead Plaintiff Deadline: May 31, 2011 + Deadline passed
Summary of Case:
A securities class action has been filed against NIVS IntelliMedia Technology Group, Inc. ("NIVS" or the "Company") on behalf of all persons or entities who purchased the securities NIVS from March 24, 2010, through March 25, 2011. This case has been filed in the USDC - California (Central).
The Complaint alleges that, throughout the Class Period, defendants knew or recklessly disregarded that their public statements concerning NIVS IntelliMedia Technology Group, Inc.'s ("NIVS" or the "Company") business, operations and prospects were materially false and misleading. Specifically, the defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company had inaccurately recorded certain transactions; (2) that there were discrepancies in the Company's accounts receivables; (3) that the Company was engaged in improper acts involving the Company's accounting records and bank statements; (4) that, as a result, the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles; (5) that the Company lacked adequate internal controls; and (6) that, as a result of the foregoing, the Company's financial results were false and misleading at all relevant times.
On March 24, 2011, NYSE Regulation, Inc., a subsidiary of NYSE Euronext - the holding company that owns and operates the American Stock Exchange ("AMEX") - unexpectedly announced that it was implementing a trading halt in the common stock of NIVS and evaluating both the need for certain public disclosures and the overall suitability for continued listing of the Company's common stock.
On March 25, 2011, the Company filed a Current Report with the SEC on Form 8-K that disclosed that the Audit Committee of the Board of the Directors had approved the dismissal of NIVS's independent auditor, MaloneBailey LLP ("MaloneBailey"). Further, the Company indicated that on March 23, 2011, MaloneBailey had provided a letter to the Audit Committee, advising that the independent auditor had encountered issues and concerns that, in their view, required additional information and procedures, including the initiation of an independent investigation, in order to verify the accuracy of certain transactions and balances recorded on the Company's financial statements and records. Moreover, MaloneBailey informed the Company in a letter of resignation that they "were unable to rely on management's representations as they relate to previously issued financial statements and [they] could no longer support its audit opinion dated March 24, 2010, related to [their] audit of consolidated financial statements of the Company and its subsidiaries as of December 31, 2009, included in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2009." According to the Company, MaloneBailey "based its resignation on what it characterized illegal acts involving the Company's accounting records and bank statements and discrepancies in accounts receivable."
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.