NEW YORK, May 26, 2006 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of all who purchased shares of China Energy Savings Technology, Inc. (Pink Sheets:CESV) ("China Energy" or the "Company") between April 21, 2005 through February 15, 2006, inclusive (the "Class Period").
The lawsuit claims that China Energy and a number of individual defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 ("Exchange Act"), 15 U.S.C. Sections 78j(b) and 78t, and SEC Rule 10b-5, 17 C.F.R. Section 240.10b-5, promulgated thereunder. Based in Hong Kong, China Energy develops, manufactures, and markets energy savings products to businesses in China.
According to the complaint, the defendants made materially false and misleading statements about China Energy's financial results during the Class Period, some contained in Securities and Exchange Commission ("SEC") filings. In particular, the complaint says defendants failed to disclose that: (a) insiders of the Company were engaged in massive self-dealing involving the Company's January 2006 private placement; and (b) the Company was in violation of SEC Rules regarding limitations on sales of restricted stock and, as a result of this violation, trading of the Company's stock would be halted by Nasdaq.
In addition, the complaint accuses the defendants of falsely stating that they had complied with the reporting requirement of the SEC and United States Generally Accepted Accounting Principles and had voluntarily complied with the reporting requirements of the U.S. Sarbanes-Oxley Act.
On February 15, 2006, as a result of the above-mentioned fraudulent activities, Nasdaq announced that trading in shares of China Energy had been halted, the complaint said.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. If you purchased or otherwise acquired China Energy stock between April 21, 2005 and February 15, 2006 and sustained damages, you may, no later than June 30, 2006, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Bradley P. Dyer of Murray, Frank & Sailer LLP.