NIVS IntelliMedia Technology Group, Inc. (NYSE: NIV)
MURRAY, FRANK & SAILER LLP is investigating securities fraud claims against NIVS IntelliMedia Technology Group, Inc. ("NIVS" or the "Company") (NYSE: NIV) and certain of its officers and underwriters, on behalf of purchasers of NIVS securities between March 24, 2010 and March 25, 2011, inclusive (the "Class Period"), and/or pursuant and/or traceable to the Company's Secondary Public Offering for the sale of NIVS common stock at $3.29 per share, on or about April 20, 2010 (the "Secondary Offering").
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 Company and certain of its officers and underwriters issued materially false and misleading statements or omitted to state material information during the Class Period, and in the documents filed with the Securities and Exchange Commission ("SEC") in relation to the Secondary Offering (the "Offering Documents"), regarding NIV's accounting policies and financial and business prospects.
Specifically, it is alleged that during the Class Period, and in the Offering Documents, the Company and certain of its officers and underwriters made false and/or misleading statements and/or failed to disclose that (1) the Company had recorded inaccurately certain transactions disclosed to investors in public filings; (2) the Company's accounts receivable figures were inaccurate and inconsistent; (3) the Company had engaged in illegal activities with regard to NIV's bank statements and accounting records; (4) the Company lacked adequate internal and financial controls; (5) the Company's financial results were not prepared in accordance with GAAP, and (6) as a result of the foregoing, the Company's financial statements were false and misleading at all relevant times.
On March 24, 2011, NYSE Regulation, Inc. ("NYSE Regulation") announced that it would halt trading in the Company's common stock on the NYSE AMEX, while it evaluated the "need for certain public disclosure," as well as the suitability for continued listing of NIV's common stock. According to the announcement, NYSE Regulation expected the trading halt to continue until its listing assessment was completed. The next day, March 25, 2011, NIVS filed a Form 8-K with the SEC announcing the dismissal and resignation of the Company's independent auditor, Malone Bailey. In addition, the 8-K included a statement of Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review, which reported that the Company's Board of Directors had determined that NIV's consolidated financial statements for fiscal year 2009 and interim financial statements of the fiscal quarters ended March 31, June 30, and September 30, 2010, should not be relied upon until Malone Bailey's "successor auditor" could assess the prior financial reports. The Form 8-K also included as an attachment a letter to the SEC from Malone Bailey, alleging massive accounting fraud and financial irregularities at NIVS. On March 28, 2011, the Company issued a press release announcing an investigation by NIV's Audit Committee into Malone Bailey's allegations about the accuracy of the Company's financial statements, and the appointment of BDO China Li Xin Da Hua CPA as the NIV's new independent auditor.
If you purchased NIV securities within the Class Period, and/or pursuant and/or traceable to the Secondary Offering, 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