The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of China Automotive Systems, Inc. between March 20, 2010 and March 17, 2011.
The Complaint charges that China Automotive and certain of its officers and directors violated federal securities laws. Specifically, the Complaint alleges that defendants failed to disclose the following: (i) China Automotive improperly accounted for its convertible notes issued on February 15, 2008; (ii) that, as a result, the Company's financial results were incorrectly stated; (iii) that the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles; and (iv) China Automotive lacked adequate internal and financial controls.
On March 17, 2011, the Company's audit committee stated it would delay the annual financial statement and would need to restate all previously issued financial statements for the fiscal year 2009 and the first three quarters of 2010. On this news, shares of China Automotive fell to a closing price of $8.81 per share. On March 18, 2011, the Company announced that it received a letter from NASDAQ stating it was no longer in compliance with NASDAQ Marketplace rules.
If you are a member of the class, you may, no later than December 26, 2011, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.
While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/chinaautomotive/, or contact Izard Nobel LLP toll-free: (800)797-5499, or by e-mail: firm@izardnobel.com. For more information about class action cases in general, please visit our website: www.izardnobel.com.
