| Company: | ShengdaTech, Inc |
| Ticker Symbol: | SDTH |
| Class Period: | Mar-15-10 to Mar-15-11 |
| Date Filed: | Mar-22-11 |
| Lead Plaintiff Deadline: | May-21-11 |
| Court: | Southern District of New York |
| Allegations: | |
ShengdaTech engages in the development, manufacturing and marketing of nano precipitated calcium carbonate ("NPCC") products. The complaint alleges that, throughout the Class Period, defendants' public statements were materially false and misleading because they misrepresented and/or failed to disclose that: (i) ShengdaTech was operating with material deficiencies in its internal controls; (ii) ShengdaTech's financial statements, during at least 2010, were not fairly presented in conformity with GAAP; and (iii) based on the foregoing, defendants lacked a reasonable basis for their positive statements about ShengdaTech's revenues, expenses, income, margins, markets, growth, average selling prices and customers.
On March 15, 2011, the Company issued a press release announcing 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 financial statements. As a result of defendants' false statements and omissions, ShengdaTech's stock price fell over 12%, closing at $3.55 on March 14, 2010, the day before trading in the Company's shares was suspended. Based upon the foregoing, the complaint charges ShengdaTech and certain of the Company's officers with violations of the Securities Exchange Act of 1934.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
