LOS ANGELES--(BUSINESS WIRE)--Glancy Binkow & Goldberg LLP announces that all persons or entities who purchased or otherwise acquired the securities of ShengdaTech, Inc. (“ShengdaTech” or the “Company”) (NASDAQ:SDTH) between March 15, 2010 and March 15, 2011, inclusive (the “Class Period”), have 28 days until the May 17, 2011 deadline to move the Court to serve as Lead Plaintiff in the securities fraud class action lawsuit. The class action lawsuit was filed in the United States District Court for the Southern District of New York.
ShengdaTech engages in the manufacturing, marketing and selling of nano precipitated calcium carbonate (NPCC) products in China. The Company serves customers in the tire, polyvinyl chloride building materials, ink, paint, latex, adhesive, paper and polyethylene industries. The Complaint alleges that the Company and certain of its executive officers knew or recklessly disregarded that their Class Period statements concerning ShengdaTech’s business and financial prospects were materially false and misleading. Specifically, the Complaint alleges that defendants misrepresented or failed to disclose that: (1) the Company’s financial results, during at least 2010, were not prepared in accordance with Generally Accepted Accounting Principles; (2), the Company lacked adequate internal and financial controls; and (3), 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.
The Private Securities Litigation Reform Act of 1995 (“PSLRA”) requires the Court to appoint a “Lead Plaintiff” in this case. Any person or group who suffered a loss as a result of purchasing ShengdaTech securities between March 15, 2010 and March 15, 2011, may ask the Court to be appointed as Lead Plaintiff, but must file a motion no later than the May 17, 2011 deadline.
If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150, Toll Free at (888) 773-9224, by e-mail to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com.