MURRAY, FRANK & SAILER LLP ANNOUNCES THE FILING OF A SHAREHOLDER CLASS ACTION AGAINST CHINA ENERGY SAVINGS TECHNOLOGY, INC. - CESV
New York, NY May 12, 2006 - Murray, Frank & Sailer LLP has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of those who purchased securities of China Energy Savings Technology, Inc. (Nasdaq: CESV) ("China Energy" or the "Company") between April 21, 2005 and February 15, 2006, inclusive (the "Class Period").
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The Complaint charges China Energy and certain of its officers and directors with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that defendants allowed Company insiders to self-deal in the Company's January 2006 private placement; (2) that China Energy failed to comply with SEC rules regarding limitations on sales of restricted stock; and (3) that as a result of this failure to comply with SEC rules, trading of China Energy's stock would be halted by NASDAQ.
On April 20, 2005, China Energy announced that the Company's stock would begin trading on NASDAQ on April 21, 2005. Shares of the Company's common stock would continue trading under the ticker symbol "CESV." The listing application was approved by NASDAQ on April 13, 2005. On February 15, 2006, NASDAQ announced that trading in shares of China Energy was halted at 3:30 p.m., EST, for "additional information requested" from the Company at a last price of $6.82. On March 22, 2006, China Energy announced that NASDAQ's request for information involved the facts and circumstances regarding the underlying transactions related to the rescission of certain Rule 144 legal opinions by the Company's prior securities counsel who resigned in February 2006, as well as certain other matters related to the Company's issuance of securities. The Company reported that it retained new securities counsel and was cooperating with NASDAQ in an effort to resolve any questions or issues raised by NASDAQ in order to resume trading as soon as possible. As of the date of filing of the Complaint, China Energy stock is still halted from trading. No indication has been given as to when, if ever, the Company's stock will resume trading.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired China Energy securities on any world exchange between April 21, 2005 and February 15, 2006, and sustained damages, you may, no later than June 30, 2006, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff’s counsel Bradley P. Dyer of Murray, Frank & Sailer LLP.
Murray, Frank & Sailer LLP
Bradley P. Dyer
Fax: (212) 682-1892
Email: [email protected]