NEW YORK, Oct. 7, 2011 (GLOBE NEWSWIRE) -- Several class action lawsuits have been filed in the United States District Court for the Southern District of New York on behalf of purchasers of the American Depository Shares ("ADS") of SinoTech Energy Limited ("SinoTech" or the "Company") between November 3, 2010 and August 16, 2011 (the "Class Period"), including purchasers of SinoTech's ADS traceable to the Company's Initial Public Offering ("IPO" or the "Offering") on or about November 3, 2010.
The lawsuit alleges that SinoTech failed to disclose the following material adverse information: (a) the Company's five largest subcontracting customers and its sole chemical supplier seem to be shell companies; (b) the Company's financial results filed with the Securities and Exchange Commission ("SEC") were inconsistent with financial filings made to Chinese authorities; and (c) the Offering Materials issued in connection with the Company's November 3, 2010, IPO were materially misleading and inaccurate.
On August 16, 2011, a report was issued by Alfred Little demonstrating that SinoTech's business was smaller than it had represented to investors in its SEC filings. The report contained a number of revelations into SinoTech, including information that the Company's sole import agent, sole chemical supplier, and five largest subcontracting customers, all appeared to be shell companies with little or no actual operations.
Following the release of the report, SinoTech's ADS declined over 41% to $1.67 per share, on unusually heavy trading volume. Later on August 16, 2011, NASDAQ halted trading in SinoTech's ADS, pending further information from the company.
If you purchased SinoTech's ADS during the Class Period you may, no later than October 18, 2011, request that the court appoint you lead plaintiff of the proposed class. A lead plaintiff is a class member that represents other class members in directing the litigation. Your share in any recovery will not be affected by serving as a lead plaintiff, however, lead plaintiffs make important decisions that could affect the overall recovery for class members. You do not need to be a lead plaintiff to recover. You may retain Milberg LLP, or other attorneys, for this action, but do not need to retain counsel to recover. If this action is certified as a class action, class members will be automatically represented by court-appointed counsel. The complaints in this action were not filed by Milberg.
Milberg LLP has represented individual and institutional investors for over four decades and serves as lead counsel in courts throughout the United States. Visit the Milberg website ( www.milberg.com ) for more information about the firm. If you wish to discuss this matter with us, please contact the following attorneys:
Jeff Westerman, Esq.
One California Plaza
300 South Grand Avenue, Suite 3900
Los Angeles, CA 90071
Andrei V. Rado, Esq.
One Pennsylvania Plaza
49th Floor
New York, NY 10119
Milberg LLP
Phone number: (800) 320-5081
Email: contactus@milberg.com
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