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China Electric Motor, Inc.

China Electric Motor, Inc. (NASDAQ: CELM)

MURRAY, FRANK & SAILER LLP is investigating securities fraud claims against China Electric Motor, Inc. ("China Electric" or the "Company") (NASDAQ: CELM) and certain of its officers, on behalf of purchasers of China Electric securities between January 29, 2010 and March 30, 2011, inclusive (the "Class Period").

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The investigation concerns violations of the Securities Act of 1933 (the "Securities Act") and Securities Exchange Act of 1934 (the "Exchange Act") that occurred when the Defendants issued materially false and misleading statements or omitted to state material information during the Class Period regarding China Electric's financial performance, business prospects, and internal controls. Specifically, it is alleged that as a result of the Defendants' misstatements, China Electric's stock traded at artificially inflated prices throughout the Class Period.

On March 31, 2011, China Electric issued a press release announcing that the Company would be unable to timely issue its financial results for fiscal year 2010, due to "possible discrepancies concerning the Company's banking statements that were very recently identified by the Company's auditors in the course of their audit of the consolidated financial statements for the fiscal year ended December 31, 2010." The press release also reported that the Company had formed a Special Committee to investigate the recently identified discrepancies.

In reaction to this information, trading in China Electric's stock was halted, effectively rendering the Company's stock illiquid.

If you purchased China Electric securities within the Class Period, and you wish to discuss this investigation, or have any questions concerning this notice or your rights or interests with respect to these matters, please contact us.



Bridget Hamill



[email protected]