NEW YORK, Aug. 31, 2007 (PRIME NEWSWIRE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) ("Pomerantz") reminds investors of Qiao Xing Universal Telephone, Inc. ("Qiao Xing" or the "Company") (Nasdaq:XING) that October 8, 2007 is the deadline to ask the Court to appoint you as Lead Plaintiff in the class action. Pomerantz filed a class action lawsuit in the United States District Court Southern District of New York, against Qiao Xing and certain officers, on behalf of purchasers of the common stock of the Company during the period from June 20, 2004 through July 16, 2007, both dates inclusive (the "Class Period"). The complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, and is docketed under Pfeiffer v. Qiao Xing Universal Telephone, Inc. et. al. (07-CV-7252).
Qiao Xing is one of China's largest manufacturers and distributors of telecommunication products and has established partnerships with companies in the United States such as Wal-Mart. The Company primarily manufactures mobile phone handsets and accessories. The complaint alleges that during the class period, Qiao Xing portrayed itself to investors as a company with growing net sales and net income, and that it reported its financial results in accordance with generally accepted accounting principles ("GAAP"). However, the true facts which were not disclosed to investors, were that the Company's financial results were materially misstated and were not prepared in accordance with GAAP, and that the Company's internal controls were materially defective.
Specifically, the complaint alleges that on July 17, 2007, Qiao Xing disclosed that Qiao Xing Mobile Communication Co., Ltd., ("QXMC"), a consolidated subsidiary of the Company, misstated revenues for the years 2005, 2004 and 2003. As a result, management decided to restate the Company's consolidated financial statements, having overstated its reported net income for the years 2005 and 2004 by 2% and 93%, respectively, and for the year ended 2003, Qiao Xing understated its reported net loss by 210%. In response to these announcements, the price of the Company's stock declined approximately 21%.
Lead plaintiffs must meet certain legal requirements. Shareholders outside the United States may also join the action. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Teresa L. Webb (tlwebb@pomlaw.com) or Carolyn S. Moskowitz (csmoskowitz@pomlaw.com) of the Pomerantz Firm at 888.476.6529 (or 888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz Firm, which has offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. For more information about the Firm, visit our web site at www.pomlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca