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Bernstein Liebhard LLP Announces Filing of Class Action Lawsuit against Tongxin International, Ltd.

  //house-home.news-articles.net/content/2011/02/1 .. n-lawsuit-against-tongxin-international-ltd.html
  Published in House and Home on Wednesday, February 16th 2011 at 14:20 GMT by Market Wire
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NEW YORK--([ BUSINESS WIRE ])--Bernstein Liebhard today announced that a lawsuit has been filed in the United States District Court for the Eastern District of New York on behalf of a class (the aClassa) of investors who purchased Tongxin International, Ltd. (aTongxina or the aCompanya) (OTCBB:TXIC) common stock between the period of May 15, 2009 through December 14, 2010, inclusive (the aClass Perioda).

Plaintiffs allege that Tongxin and certain of its officers and directors violated Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 by failing to disclose that: (i) the Companya™s financial results, as reported, failed to properly account for certain related-transactions, and as a result, the Company would be unable to file its audited consolidated financial statements for the FY 2009; (ii) the Company would not have earnings growth, particularly in the South East Asian markets, or meet expected earnings guidance; (iii) the Companya™s top officers were conspiring to embezzle Company funds; (iv) the Company lacked adequate internal controls; and (v) the defendants lacked any reasonable basis for the positive statements about Tongxina™s growth and future business prospects.

Starting from June 30, 2010, the Company slowly began to disclose problems previously hidden from the public, including their failure to timely file with the SEC its required audited consolidated financial statements, the delisting of the Companya™s stock on NASDAQ, the Companya™s lowered expected revenues for fiscal year 2010, removal of key executives, and the announcement of the Companya™s legal proceedings against their former Chief Executive Officer and Chief Financial Officer for embezzlement.

In a reaction to this news, shares of Tongxin common stock fell from prices trading as high as $6.16 per share to as low as $1.35 per share, representing a drop of more than 75%.

Plaintiffs seek to recover damages on behalf of all Class members who purchased or otherwise acquired shares of Tongxin during the Class Period. If you purchased or otherwise acquired Tongxin shares during the Class Period, and either lost money on the transaction or still hold the shares, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than March 4, 2011.

A alead plaintiffa is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class membera™s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.

If you are interested in discussing your rights as a Tongxin shareholder and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or [ seidman@bernlieb.com ].

Bernstein Liebhard has pursued hundreds of securities, [ consumer ] and shareholder rights cases and recovered almost $3 billion for its clients. It has been named to The National Law Journala™s aPlaintiffsa™ Hot Lista in each of the last eight years.

You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Eastern District of New York.

ATTORNEY ADVERTISING. © 2011 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. Prior results do not guarantee or predict a similar outcome with respect to any future matter.