Tongxin International, Ltd. TXIC Securities Fraud

January 4 2011 - by Lucy Campbell

Company:	Tongxin International, Ltd.
Ticker Symbol:	TXIC
Class Period:	May-15-09 to Dec-14-09
Date Filed:	Jan-3-11
Lead Plaintiff Deadline:	Mar-4-11
Court:	Eastern District of New York
Allegations:

New York, NY: A lawsuit has been filed on behalf of a class (the "Class") of investors who purchased Tongxin International, Ltd. ("Tongxin" or the "Company") common stock between the period of May 15, 2009 through December 14, 2009.

The Complaint alleges Tongxin and certain of its officers and directors with violating Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 by failing to disclose that: (i) the Company's financial results, as reported, failed to properly account for certain related-transactions, and as a result, the Company would be unable to file its audited consolidated financial statements for the FY 2009; (ii) the Company would not have earnings growth, particularly in the South East Asian markets, or meet expected earnings guidance; (iii) the Company's top officers were conspiring to embezzle Company funds; (iv) the Company lacked adequate internal controls; and (v) the defendants lacked any reasonable basis for the positive statements about Tongxin's growth and future business prospects.

Starting from June 30, 2010, the Company slowly began to disclose problems previously hidden from the public, including their failure to timely file with the SEC its required audited consolidated financial statements, the delisting of the Company's stock on NASDAQ, the Company's lowered expected revenues for fiscal year 2010, removal of key executives, and the announcement of the Company's legal proceedings against their former Chief Executive Officer and Chief Financial Officer for embezzlement.

In a reaction to this news, shares of Tongxin common stock fell from prices trading as high as $6.16 per share to as low as $1.35 per share, representing a drop of more than 75%.

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.

Tongxin International, Ltd. TXIC Securities Fraud Legal Help

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