Class Period: Dec 29, 2010 to Apr 7, 2011
Lead Plaintiff Deadline: Jun 14, 2011 + Deadline passed
Summary of Case:
A securities class action has been filed against Subaye, Inc. ("Subaye" or the "Company") on behalf of all persons who purchased or otherwise acquired the securities of Subaye from December 29, 2009 through April 7, 2011. This case has been filed in the USDC - New York (Southern).
The Complaint alleges as follows: On April 7, 2011 the Company disclosed its auditor, PricewaterhouseCoopers Hong Kong ("PwC") resigned. PwC identified matters that may materially impact the fairness and reliability of Subaye's quarterly financial information for the three months ended December 31, 2010 and may cause PwC to be unwilling to rely on managements' representations. PwC's was unable to obtain information and supporting documentation to verify: (a) cash settlements from sales agents to Subaye, (b) the end customer subscriptions for the Company's services and the services rendered to the end customers, (c) marketing and promotion activities performed by sales agents in return for fees paid to such agents and recorded as expenses of the Company. PwC also stated that Subaye provided insufficient explanations regarding commonalities between certain customers and vendors. Lastly, PwC could find no evidence of any business tax payments by the Company for services rendered in China. Since April 7, 2011 trading in the Company's stock has been halted, rendering the Company's stock illiquid and causing investors further damage.
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.