NEW YORK, Feb. 7, 2011 (GLOBE NEWSWIRE) -- Harwood Feffer LLP announces that a class action lawsuit has been commenced in the United States District Court for the Central District of California on behalf of purchasers of the common stock of Tongxin International Ltd.. ("Tongxin" or the "Company") (Nasdaq:TXIC) from May 15, 2009 through December 14, 2010, inclusive (the "Class Period").
No class has yet been certified in the above action. Class members will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than March 4, 2011 and be selected by the court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages to serve as a Lead Plaintiff. You may contact the Harwood Feffer LLP website (http://www.hfesq.com) or Samuel K. Rosen, directly, at srosen@hfesq.com to ask any questions you may have in that regard.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and financial results. Specifically, defendants improperly accounted for Tongxin's related-party transactions. As a result of defendants' false statements, Tongxin's stock traded at artificially inflated prices during the Class Period, reaching a high of $12.07 per share on October 20, 2009.
On June 10, 2010, Tongxin announced that it would delay filing its Form 20-F for the fiscal year ending December 21, 2009. On October 12, 2010, Tongxin announced that NASDAQ would delist the Company's stock due to its failure to timely file its Form 20-F and acknowledged that a report issued by KPMG, the forensic accountants hired by the Company's Audit Committee, concluded that the documentary support for certain of its related-party transactions was contradictory, insufficient, and lacking in substantive detail and accuracy, thus calling into question the validity of the transactions.
On November 20, 2010, Tongxin announced that the Company's CEO and CFO were being removed from their Company positions and lowered its revenue guidance for fiscal year 2010 from its prior outlook of $160 million to approximately $110 million. Then, on December 13, 2010, Tongxin announced that it had filed a civil suit against its former CFO, Jackie Chang, due to the wrongful transfer of Company funds by Chang into an account for the benefit of her and the Company former CEO, Rudy Wilson. On this news, Tongxin's stock declined to close at $1.35 per share on December 14, 2010.
Harwood Feffer has been representing individual and institutional investors for many years, serving as lead counsel in numerous cases in federal and state courts. Please visit the Harwood Feffer LLP website (http://www.hfesq.com) for more information about the firm.
If you purchased Tongxin common stock during the Class Period, suffered a loss on those shares in excess of $100,000 and you wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact:
Robert I. Harwood, Esq.
Samuel K. Rosen, Esq.
Harwood Feffer LLP
488 Madison Avenue
New York, New York 10022
Phone Numbers: (877) 935-7400
(212) 935-7400
Email: rharwood@hfesq.com
srosen@hfesq.com
Website: http://www.hfesq.com
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