NEW YORK, Dec. 4, 2008 (GLOBE NEWSWIRE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) ("Pomerantz") has filed a class action lawsuit in the United States District Court, Southern District of New York, against Noah Education Holdings Ltd. ("Noah Education" or the "Company") (NYSE:NED). The class action was filed on behalf of purchasers of American Depository Shares ("shares") pursuant or traceable to the Company's October 19, 2007 Initial Public Offering ("IPO"). The Complaint was also filed against certain underwriters of the IPO and alleges violations of Sections 11 and 12(a)(2) of the Securities Act (15 U.S.C. Sections 77K, and 77(a)(2)).
Noah Education develops and markets interactive educational software and delivery platforms that combine traditional education content with digital and multi-media technologies. The Complaint specifically alleges that on or about October 19, 2007, the Company conducted its IPO which allowed it to raise $137 million by selling 9.85 million of the Company's shares. In connection with the IPO, it is alleged that the Company filed Registration Statements and Prospectuses that contained false and misleading statements because they concealed the fact that: (1) the Company was, and had been, experiencing a significant increase in the cost of raw materials; and (2) this cost increase would dramatically decrease the Company's gross profit margins.
On November 19, 2007, one month after the IPO, the Company disclosed that its profit margin had declined from 59% to 50.2%. In direct response to this news, the price of the Company's shares declined $4.15 per share, and closed at $6.72 per shares on November 20, 2007. This closing price represented a cumulative loss of $7.28 per share or over 50 percent of the value of the Company's shares at the time of its IPO just one month prior.
If you purchased or acquired the shares of Noah Education pursuant or traceable to the IPO, you have until December 26, 2008 to ask the Court to appoint you as lead plaintiff for the class. Lead plaintiffs must meet certain legal requirements. Shareholders outside the United States may join the action. 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) 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.
The Pomerantz Firm, which has offices in New York, Chicago, Washington, D.C., Columbus, Ohio and the San Francisco Bay area, 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 70 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.