NEW YORK, Dec. 29, 2010 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross LLP has filed a class action lawsuit against China Education Alliance, Inc. ("CEU" or the "Company") (NYSE:CEU) and certain of its officers. The class action (Civil Action No.: 10-cv-09987) pending in Central District of California is on behalf of a class of all persons or entities who purchased or otherwise acquired CEU securities during the period from March 31, 2009 through and including November 29, 2010 (the "Class Period"). The Complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased CEU securities during the Class Period, you have until January 31, 2011 to ask the Court to appoint you as lead plaintiff for the class. A copy of the complaint can be obtained at . To discuss this action, contact Rachelle R. Boyle at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Company offers online education and tutoring to families, provincial education officials, administrators, schools, and teachers in China. The Complaint alleges that throughout the Class Period, defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company overstated revenue by at least $24.9 million for the fiscal year 2008 as the Company filed an annual report for its main operational subsidiary with Chinese authorities where it reported less than $1 million in revenue for 2008; (2) that the Company lacked adequate internal and external financial controls; and (3) that, as a result of the foregoing, the Company's financial results were materially false and misleading at all relevant times.
On November 29, 2010, Kerrisdale Capital, a market research and trading firm, published a 30-page analyst report citing "compelling evidence that CEU is fabricating its SEC financial statements" and stating that the company's revenue and profit are highly overstated and the company is "mostly a hoax." On this news, CEU shares declined $1.48 per share, or more than 33.5%, to close on November 29, 2010 at $2.93 a share on unusually high volume.
On December 7, 2010, the Company held a shareholder conference call where it acknowledged reporting different financial statements to China's State Administration of Industry and Commerce and the U.S. Securities and Exchange Commission. An analyst called the conference call "inadequate in quelling investors' concerns." On this news, CEU shares fell an additional $0.91 or 28% and closed at $2.34 on December 7, 2010.
The Pomerantz Firm
The Pomerantz Firm, with offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See .
CONTACT: Pomerantz Haudek Grossman & Gross LLP Rachelle R. Boyle 888-476-6529 (ext. 237) firstname.lastname@example.org