NEW YORK--(BUSINESS WIRE)--Bernstein Liebhard LLP today announced that a lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of a class (the “Class”) of investors who purchased Subaye, Inc. (“Subaye” or the “Company”) (NYSE: SBAY) securities between the period of December 29, 2009 to April 7, 2011 (the “Class Period”). Plaintiffs allege violations of the Securities and Exchange Act of 1934 against Subaye and certain individual defendants.
The Complaint asserts violations of the federal securities laws against Subaye and its officers and directors for issuing materially false and misleading financial statements to investors. On April 7, 2011, the Company disclosed that its auditor, PricewaterhouseCoopers Hong Kong (“PwC”), had resigned. PwC identified matters that may materially impact the fairness and reliability of Subaye’s quarterly financial information for the three months ended December 31, 2010 and may cause PwC to be unwilling to rely on management’s representations.
PwC was unable to obtain information and supporting documentation to verify: (a) cash settlements from sales agents to Subaye; (b) the end customer subscriptions for the Company’s services and the services rendered to the end customers; and (c) marketing and promotion activities performed by sales agents in return for fees paid to such agents and recorded as expenses of the Company. PwC also stated that Subaye provided insufficient explanations regarding commonalities between certain customers and vendors. Lastly, PwC could find no evidence of any business tax payments by the Company for services rendered in China.
Since April 7, 2011, trading in the Company’s stock has been halted, rendering the Company’s stock illiquid and causing investors huge damages.
Plaintiffs seek to recover damages on behalf of all Class members who purchased or otherwise acquired shares of Subaye during the Class Period. If you purchased or otherwise acquired Subaye shares during the Class Period, and either lost money on the transaction or still hold the shares, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than June 14, 2011.
A “lead plaintiff” is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
If you are interested in discussing your rights as a Subaye shareholder and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or seidman@bernlieb.com.
Bernstein Liebhard has pursued hundreds of securities, consumer and shareholder rights cases and recovered almost $3 billion for its clients. It has been named to The National Law Journal’s “Plaintiffs’ Hot List” in each of the last eight years.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Southern District of New York.
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