NEW YORK, Feb. 13, 2015 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a class action lawsuit has been commenced in the United States District Court for the District of New Jersey on behalf of purchasers of Telestone Technologies Corp. ("Telestone" or the "Company") (Pink Sheets:TSTC) securities between March 31, 2010, and April 16, 2013, inclusive (the "Class Period"). Investors with losses on Telestone securities purchased during the class period are encouraged to contact us immediately at (800) 575-0735 or email classmember@whafh.com.
The complaint alleges Telestone earned a majority of its revenues from sales to the three largest Chinese telecommunications providers – China Unicom, China Mobile, and China Telecom. In fact, Telestone only collected a small fraction of its purported sales to these Chinese telecommunications providers, and internally determined both that these Chinese telecommunications providers were routinely breaching their contractual obligations to Telestone and that Telestone was powerless to do anything in response. As a result, revenues from sales to these Chinese telecommunications providers were not reasonably certain to be collectable, and should not have been recognized.
The complaint further alleges that the market gradually learned that there may have been an issue with Telestone's revenues when its accounts receivable ballooned, which resulted in the Company's stock price declining during the Class Period from $2.48 to $2.01, or 19.0%, on May 15, 2012, $1.62 to $1.38, or 14.8%, on November 19, 2012, and from $0.84 to $0.30, or 64.2%, following resumption of trading after a trading halt on June 3, 2013.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has over 70 attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein Adler Freeman & Herz LLP by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website at www.whafh.com. All e-mail correspondence should make reference to the "Telestone Technologies investigation."
Attorney Advertising. Prior results do not guarantee or predict a similar outcome.