NEW YORK, March 22, 2011 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross LLP has filed a class action lawsuit against ShengdaTech, Inc. ("ShengdaTech" or the "Company") (Nasdaq:SDTH) and certain of its officers. The class action (11 Civ. 1996), pending in the Southern District of New York, is on behalf of a class of all persons or entities who purchased or otherwise acquired ShengdaTech securities during the period from May 10, 2010 through and including March 14, 2011 (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 ShengdaTech securities during the Class Period and would like to serve as Lead Plaintiff for the class, you have until May 17, 2011 to ask the Court to seek appointment from the Court. A copy of the complaint can be obtained at . To discuss this action, contact Rachelle R. Boyle at firstname.lastname@example.org or 888.476.6529, toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
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, serious discrepancies in the Company's and its subsidiaries' financial records and the lack of adequate internal and financial controls resulted in the Company's issuance of materially false and misleading financial results at all relevant times.
On March 15, 2011, the Company shocked the market with the disclosure "that it 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." Upon this disclosure, Nasdaq halted trading of ShengdaTech shares at $3.55.
Defendant ShengdaTech manufactures and markets specialty additives. The Company's nano precipitated calcium carbonate products are sold to its customers in the tire, polyvinyl chloride building materials, ink, paint, latex, adhesive, paper and polyethylene industries. The aggregate number of shares of ShengdaTech securities outstanding as of November 5, 2010 is approximately 54 million shares.
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.
CONTACT: Rachelle R. Boyle Pomerantz Haudek Grossman & Gross LLP 888-476-6529 (ext. 237) email@example.com