NEW YORK, May 1, 2006 (PRIMEZONE) -- Labaton Sucharow & Rudoff LLP filed a class action lawsuit on May 1, 2006 in the United States District Court for the Southern District of New York, on behalf of persons who purchased or otherwise acquired publicly traded securities of China Energy Savings Technology, Inc. ("China Energy" or the "Company") (Nasdaq:CESV) between April 21, 2005 and February 15, 2006, inclusive, (the "Class Period"). The lawsuit was filed against China Energy, Kwun-Luen Siu, Lawrence Lok, Yuen-Ming and Sun Li ("Defendants").
If you are a member of this class you can view a copy of the complaint and join this class action online at http://www.labaton.com/get/?case=ChinaEnergy.
The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that Defendants failed to disclose: (1) that the Company's private placement offering in January 2006 was fraught with self dealing; and, (2) certain information involving the facts and circumstances about certain underlying transactions related to the rescission of certain Rule 144a legal opinions by the Company's prior securities counsel who resigned in February 2006.
On January 17, 2006, the Company announced an underwriting agreement to raise $50 million through a private placement of Company stock. The very same day, China Energy announced that Mr. Sun Li resigned as Chairman and CEO of the Company. Upon his resignation, the Company immediately appointed Kwun Luen Siu Chairman of the Board and CEO. On January 20, 2006, China Energy filed two registration statements indicating that the Company could offer up to ten million shares of its common stock and in addition the Company also indicated that selling stockholders could sell up to 6.05 million shares. Shortly thereafter, on February 9, 2006, China Energy announced that it was delaying the filing of its SEC Form 10-Q for the quarter ended December 31, 2005, due to the recent change in management. On February 14, 2006, the Company filed its delayed Form 10-Q, which revealed that the Company and its independent auditors were the subject of an informal SEC inquiry. On February 15, 2006, NASDAQ announced that trading was halted in China Energy. The shares of the Company have been halted by NASDAQ ever since.
Plaintiffs are represented by the law firm of Labaton Sucharow & Rudoff LLP. Labaton Sucharow is one of the country's premier national law firms that represent individual and institutional investors in class action, complex securities and corporate governance litigation. The firm has been a champion of investor rights for over 40 years and has been recognized for its reputation for excellence by the courts.
If you bought China Energy securities between April 21, 2005 and February 15, 2006, inclusive, you may qualify to serve as Lead Plaintiff. Lead Plaintiff papers must be filed with the court no later than sixty days from today. If you would like to consider serving as lead plaintiff or have any questions about the lawsuit, please contact one of our representatives or Christopher Keller, Esq. at 800-321-0476.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.