NEW YORK, June 29, 2012 (GLOBE NEWSWIRE) -- Shareholders of ChinaCast Education Corporation ("ChinaCast" or the "Company") (Nasdaq:CAST) are reminded of the securities class action filed against ChinaCast and certain of its officers. The federal class action (2:12-cv-05107), filed in the United States District Court, Central District of California, is on behalf of all persons who purchased securities between February 14, 2011 and April 2, 2012, inclusive (the "Class Period"). This class action is brought under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder against the Company and certain of its top officials.
If you are a shareholder who purchased ChinaCast securities during the Class Period, you have until July 25, 2012 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Rachelle R. Boyle at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free, x237. 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 and/or failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, that: (1) the Company permitted the wrongful transfer of at least $120 million from two CAST subsidiaries' bank accounts; (2) the Company permitted the wrongful transfer of the Company's assets including two private colleges, to unauthorized persons; (3) the Company permitted illicit related party transactions by using the Company's assets to establish and operate education-related companies for unauthorized entities; (4) the Company permitted loans to third parties secured by Company assets; and (5) the Company's internal controls were deficient.
On April 2, 2012, the Company disclosed that it had received a letter from NASDAQ advising that it was no longer in compliance with NASDAQ's reporting requirements. That same day, NASDAQ halted trading of the Company's stock at the last trading price of $4.24 until it received "additional information requested."
On April 19, 2012, the Company disclosed that it was investigating, among other things, the transfer of two of the Company's colleges to unauthorized persons; possible undisclosed related party transactions; possible undisclosed loans to third parties secured by the Company's assets; and suspicious trading of the Company's securities.
The Pomerantz Firm, with offices in New York and Chicago, 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 75 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 defrauded investors. See www.pomerantzlaw.com.
CONTACT: Rachelle R. Boyle Pomerantz Haudek Grossman & Gross LLP email@example.com
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Telekurs USA
Postage Rates Bots go here