ATLANTA--(BUSINESS WIRE)--Holzer Holzer & Fistel, LLC announces that it has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of purchasers of ShengdaTech, Inc. (“ShengdaTech” or the “Company”) (NASDAQ: SDTH) common stock who purchased shares between March 15, 2010 and March 15, 2011, inclusive (the “Class Period”). The lawsuit alleges that a series of statements regarding ShengdaTech’s business, its prospects and its operations were materially false and misleading at the time they were made.
Specifically, the complaint alleges, among other things, that ShengdaTech violated the federal securities laws because they misrepresented 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.
If you purchased shares of ShengdaTech common stock during the Class Period, you have the legal right to petition the Court to be appointed a "lead plaintiff." A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any such request must satisfy certain criteria and be made no later than May 17, 2011. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. If you are a ShengdaTech investor and would like to discuss a potential lead plaintiff appointment, or your rights and interests with respect to the lawsuit, you may contact Michael I. Fistel, Jr., Esq., or Marshall P. Dees, Esq. via email at mfistel@holzerlaw.com, or mdees@holzerlaw.com, or via toll-free telephone at (888) 508-6832.
Holzer Holzer & Fistel, LLC is an Atlanta, Georgia law firm that dedicates its practice to vigorous representation of shareholders and investors in litigation nationwide, including shareholder class action and derivative litigation. More information about the firm is available through its website, www.holzerlaw.com and upon request from the firm.