NEW YORK, May 3, 2011 (GLOBE NEWSWIRE) -- Class action lawsuits were filed on behalf of purchasers of the common stock of ShengdaTech (Nasdaq:SDTH) between March 15, 2010 and March 15, 2011.
The lawsuit alleges that ShengdaTech did not disclose to shareholders that it was operating with material deficiencies in the system of internal control over its financial reporting and that ShengdaTech's financial statements, during at least 2010, were not recorded in conformity with a recognized accounting system such as GAAP.
Trading of ShengdaTech shares were halted on March 15 after the company announced that it had appointed a special committee of the Board of Directors to investigate "potentially serious discrepancies and unexplained issues relating to the company and its subsidiaries' financial records identified by the company's auditors" in the course of their examination of ShengdaTech's consolidated financial statements for the year ended December 31, 2010.
If you are a member of the class, you may, no later than May 17, 2011, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision of whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions that could affect the overall recovery for class members. You do not need to contact us or retain individual counsel if you are a class member. If this action is certified as a class action, class members will be automatically represented by court-appointed counsel. The action discussed here was not filed by Milberg.
Milberg LLP has been representing individual and institutional investors for more than four decades and serves as lead counsel in federal and state courts throughout the United States. Please visit the Milberg website ( www.milberg.com ) for more information about the firm. If you wish to discuss this matter with us, or have any questions regarding this matter, please contact the following attorney:
Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome.
CONTACT: Milberg LLP (800) 320-5081