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Rigrodsky & Long, P.A. Announces Class Action Lawsuit Against China Electric Motor, Inc. - CELM

^{Published on 2011-04-08 16:35:39 - Market Wire}
 

WILMINGTON, Del.--([ BUSINESS WIRE ])--[ Rigrodsky & Long, P.A. ] announces that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of all persons or entities who purchased or otherwise acquired the stock of China Electric Motor, Inc. (aChina Electrica or the aCompanya) (Nasdaq: [ CELM ]) pursuant and/or traceable to the Companya™s January 29, 2010 Initial Public Offering (the aIPOa) and between January 29, 2010 and March 30, 2011, inclusive (the aClass Perioda), alleging violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 (the aComplainta).

"possible discrepancies concerning the Companya™s banking statements that were very recently identified by the Companya™s auditors a."

If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact [ Timothy J. MacFall, Esquire ] or [ Noah R. Wortman, Case Development Director ] of Rigrodsky & Long, P.A., 919 North Market Street, Suite 980 Wilmington, Delaware, 19801 at (888) 969-4242, by e-mail to [ info@rigrodskylong.com ], or via our website: [ http://www.rigrodskylong.com/news/ChinaElectricMotorInc-CELM ].

The Complaint names China Electric, certain of the Companya™s current executive officers and directors, and certain underwriters as defendants. China Electric is engaged in the design, manufacture, sale, and marketing of micro-motors and micro-motor components in the Peoplea™s Republic of China and internationally.

The Complaint alleges that the Company, certain of its officers and directors, and certain underwriters issued materially false and misleading information in China Electrica™s IPO documents and in its filings with the United States Securities and Exchange Commission (aSECa) concerning the Companya™s financial condition and internal controls.

On March 31, 2011, China Electric issued a press release wherein it announced it had filed a Notification with the SEC that the Companya™s Annual Report on Form 10-K for the year ended December 31, 2010 would not be filed before the March 31, 2011 deadline, nor would it be filed by the April 15, 2011 extended due date. China Electric revealed that the delay related to apossible discrepancies concerning the Companya™s banking statements that were very recently identified by the Companya™s auditors a.a In addition, the Company also announced the formation of a Special Committee to investigate the matter and it will also delay the release of its fourth quarter and full year earnings release and investor conference call, previously scheduled for March 31, 2011, until the Form 10-K is filed.

As a result of this adverse information, trading in China Electrica™s stock has been halted and, to date, has not resumed.

If you wish to serve as lead plaintiff, you must move the Court no later than May 31, 2011. A lead plaintiff is a representative party acting 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. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

While [ Rigrodsky & Long, P.A. ] did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, [ regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation ], including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.

Attorney advertising. Prior results do not guarantee a similar outcome.