NEW YORK, June 2, 2006 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) ("Pomerantz") has filed a class action lawsuit in the United States District Court for the Southern District of New York against China Energy Savings Technology, Inc. ("China Energy" or the "Company") (Pink Sheets:CESV) and certain of its officers, on behalf of purchasers of China Energy securities during the period between April 21, 2005 and February 15, 2006, both dates inclusive (the "Class Period"). The complaint alleges violations of Section 10(b) and Section 20(a) of the Securities Exchange Act, and Rule 10b-5 promulgated thereunder.
China Energy is a Nevada corporation which maintains its principal office in Wanchai, Hong Kong. The Company engages in the development, manufacture, sale, and distribution of energy-saving products for use in commercial and industrial settings in the People's Republic of China. The complaint alleges that during the Class Period, the Company failed to disclose insider sales and self-dealing transactions in an adequate or timely basis. Moreover, the Company failed to disclose, as a "risk factor" in its quarterly or annual reports or elsewhere, that self dealing transactions in the Company's stock by insiders could lead its stock being halted by Nasdaq.
In particular, the complaint alleges that the defendants failed to disclose that: (a) the Company's insiders were engaging in 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 that resulted in the stock being halted by Nasdaq.
On February 15, 2006, after the market closed, the Nasdaq announced that it had halted trading of China Energy stock. The press release stated only that "additional information" was requested from the Company and that trading would be suspended until the Company provided the requested information.
If you purchased the securities of China Energy during the Class Period, you have until June 30, 2006 to move the Court to appoint you as lead plaintiff for the Class. Lead plaintiffs must meet certain legal requirements. Shareholders outside the United States may also join the action, regardless of where they live or which exchange was used to purchase the securities. 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. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
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 50 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.
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