NEW YORK, May 13, 2011 (GLOBE NEWSWIRE) -- Shareholders of NIVS IntelliMedia Technology Group, Inc. ("NIVS" or the "Company") (NYSE Amex:NIV) are reminded of the securities class action lawsuit filed against NIVS and certain of its officers. The class action (11-cv-03857), pending in the U.S. District Court for the Central District of California, is on behalf of a class of purchasers of NIVS securities during the period from March 24, 2010 through and including March 25, 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 NIVS securities during the Class Period and would like to serve as Lead Plaintiff for the class, you have until May 31, 2011 to seek appointment from the Court. A copy of the complaint can be obtained at . To discuss this action, contact Rachelle R. Boyle at rrboyle@pomlaw.com or 888.476.6529, toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
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 misrepresented and/or failed to disclose, among other things, that: (1) the Company had inaccurately recorded certain transactions; (2) there were discrepancies in the Company's accounts receivables; (3) the Company was engaged in illegal acts involving the Company's accounting records and bank statements; (4) as a result, the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles; (5) the Company lacked adequate internal controls; and (6) as a result of the foregoing, the Company's financial results were false and misleading at all relevant times.
On March 25, 2011, the Company disclosed that the Audit Committee of the Board of the Directors had approved the dismissal of NIVS's independent auditor, MaloneBailey LLP ("MaloneBailey"). Further, the Company indicated that MaloneBailey had provided a letter to the Audit Committee, advising that the independent auditor had encountered issues and concerns that, in their view, required additional information and procedures, including the initiation of an independent investigation, in order to verify the accuracy of certain transactions and balances recorded on the Company's financial statements and records. Moreover, MaloneBailey informed the Company in a letter of resignation that they "were unable to rely on management's representations as they relate to previously issued financial statements and [they] could no longer support its audit opinion dated March 24, 2010, related to [their] audit of consolidated financial statements of the Company and its subsidiaries as of December 31, 2009, included in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2009." According to the Company, MaloneBailey "based its resignation on what it characterized as illegal acts involving the Company's accounting records and bank statements and discrepancies in accounts receivable."
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: Rachelle R. Boyle Pomerantz Haudek Grossman & Gross LLP 888-476-6529 (ext. 237) rrboyle@pomlaw.com