NEW YORK, June 4, 2012 (GLOBE NEWSWIRE) -- Egleston Law Firm announces that a class action lawsuit has been filed in the United States District Court for the Central District of California, on behalf of investors who purchased the shares of ChinaCast Education Corporation ("ChinaCast" or the "Company") (Nasdaq:CAST) between February 14, 2011 and April 2, 2012, inclusive (the "Class Period").
The Complaint asserts violations of the federal securities laws against ChinaCast and its officers and directors for issuing false and misleading information to investors about the Company's true financial and business condition. Specifically, the Complaint alleges ChinaCast issued materially false and misleading financial statements during the Class Period because of undisclosed material weaknesses in the Company's internal controls and the alleged wrongful transfer of $120 million in cash by CEO Chan from bank accounts of ChinaCast's subsidiaries.
If you wish to serve as lead plaintiff, you must move the Court no later than July 25, 2012. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Gregory M. Egleston, Esq. of the Egleston Law Firm at (212) 683-3400, or via e-mail at egleston@gme-law.com.
While the Egleston Law Firm did not file the Complaint in this matter, the firm regularly prosecutes cases on behalf of shareholders in state and federal courts throughout the United States. You may also visit the firm's website at www.gme-law.com.
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