Murray, Frank & Sailer LLP Announces Investigation of Securities Fraud Claims Against ZST Digital Networks, Inc.
NEW YORK - (BUSINESS WIRE) - MURRAY, FRANK & SAILER LLP is investigating securities fraud claims against ZST Digital Networks, Inc. ("ZST" or the "Company") (NASDAQ: ZSTN) and certain of its officers, on behalf of purchasers of ZST securities between October 20, 2009 to April 21, 2011, inclusive (the "Class Period").
The investigation concerns violations of the Securities Act of 1933 (the "Securities Act") and the 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 ZST's financial performance.
Specifically, it is alleged that during the Class Period, the Defendants made false and/or misleading statements and/or failed to disclose that the financial statements for fiscal years ending in December 31, 2008 and December 31, 2009. Further, it is alleged that as a result of the Defendants' misstatements, ZST's stock traded at artificially inflated prices throughout the Class Period.
On April 21, 2011, a report was published on a financial news website entitled Seeking Alpha. According to the report, ZST's public filings with the Securities and Exchange Commission ("SEC") reported revenues "hundreds of times" of what ZST reported to Chinese regulators. The report also indicated that ZST "paid zero tax in China, but reported substantial amounts to the SEC." As a result of this release of this adverse information, the price of the Company's common stock plummeted. During 2010, ZST traded as high as over $10 per share, but the stock price fell from under $5 per share to as low as $2.60 after the report was published.
If you purchased ZST 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.
MURRAY, FRANK & SAILER LLP
Katherine E. Smith