WILMINGTON, Del., June 4, 2014 (GLOBE NEWSWIRE) -- Andrews & Springer LLC, a boutique securities class action law firm focused on representing shareholders nationwide, announces that a lawsuit has been commenced by the U.S. Securities and Exchange Commission (the "SEC") against former executives of ChinaCast Education Corp. ("ChinaCast") (OTC:CAST) for securities fraud. (A copy of the SEC's complaint can be found here: http://www.sec.gov/litigation/complaints/2013/comp-pr2013-200.pdf)
On September 26, 2013, the SEC filed an action against ChinaCast's former Chairman and CEO Chan Tze Ngon ("Chan") and former President Jiang Xiangyuan ("Jiang") for engaging in a scheme that improperly diverted $41 million of Company proceeds to certain ChinaCast subsidiaries where the former executives secretly held ownership stakes. Additionally, according to the SEC, Jiang used non-public information from the Company to dump over $230,000 worth of stock before the information became public. When news about the fraud and misconduct reached the public, ChinaCast's market capitalization dropped from over $200 million down to $5 million. On April 2, 2014, NASDAQ suspended trading in ChinaCast. The Company has subsequently been delisted from the NASDAQ exchange and currently trades over-the-counter.
If you owned shares of ChinaCast from February 14, 2011 to April 2, 2012 and want to receive additional information and protect your investments free of charge, please visit us at http://www.andrewsspringer.com/cases-investigations/chinacast or contact Craig J. Springer, Esq. at cspringer@andrewsspringer.com, or call toll free at 1-800-423-6013. You may also follow us on LinkedIn – www.linkedin.com/company/andrews-&-springer-llc, Twitter – www.twitter.com/AndrewsSpringer or Facebook - www.facebook.com/AndrewsSpringer for future updates.
Andrews & Springer is a boutique securities class action law firm representing shareholders nationwide who are victims of securities fraud, breaches of fiduciary duty or corporate misconduct. Having formerly defended some of the largest financial institutions in the world, our founding members use their valuable knowledge, experience, and superior skill for the sole purpose of achieving positive results for investors. These traits are the hallmarks of our innovative approach to each case our Firm decides to prosecute. For more information please visit our website at www.andrewsspringer.com. This notice may constitute Attorney Advertising.