| Company: | Subaye Inc, |
| Ticker Symbol: | SBAY |
| Class Period: | Dec-29-09 to Apr-7-11 |
| Date Filed: | Apr-29-11 |
| Lead Plaintiff Deadline: | Jun-28-11 |
| Court: | Southern District of New York |
| Allegations: | |
The Complaint asserts violations of the federal securities laws against Subaye and its officers and directors for issuing materially false and misleading financial statements to investors. On April 7, 2011, the Company disclosed that its auditor, PricewaterhouseCoopers Hong Kong ("PwC"), had resigned. PwC identified matters that may materially impact the fairness and reliability of Subaye's quarterly financial information for the three months ended December 31, 2010 and may cause PwC to be unwilling to rely on management's representations.
PwC was unable to obtain information and supporting documentation to verify: (a) cash settlements from sales agents to Subaye; (b) the end customer subscriptions for the Company's services and the services rendered to the end customers; and (c) marketing and promotion activities performed by sales agents in return for fees paid to such agents and recorded as expenses of the Company. PwC also stated that Subaye provided insufficient explanations regarding commonalities between certain customers and vendors. Lastly, PwC could find no evidence of any business tax payments by the Company for services rendered in China.
Since April 7, 2011, trading in the Company's stock has been halted, rendering the Company's stock illiquid and causing investors huge damages.
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.
