San Diego, CA -- (SBWIRE) -- 05/29/2012 -- An investor in NASDAQ:CAST shares filed a lawsuit in the U.S. Distrcit Court for the Central District of California over alleged securities laws violations by Chinacast Education Corporation in connection with certain financial statements.
Investors who purchased shares of Chinacast Education Corporation (NASDAQ:CAST) between February 14, 2011 and April 2, 2012, have certain options and there are strict and short deadlines running. Deadline: July 25, 2012. NASDAQ:CAST stockholders should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of investors who purchased the stock of ChinaCast Education Corporation (NASDAQ: CAST) between February 14, 2011 and April 2, 2012, that ChinaCast Education Corporation and certain of its officers and directors violated Federal Securities Laws by issuing allegedly false and misleading information to investors about the Company’s true financial and business condition. Specifically, the plaintiff alleges that ChinaCast Education Corporation issued materially false and misleading financial statements between February 14, 2011 and April 2, 2012because of undisclosed material weaknesses in the Company’s internal controls and the alleged wrongful transfer of $120 million in cash by CEO Chan from bank accounts of ChinaCast’s subsidiaries.
On April 2, 2012, the NASDAQ stock market halted trading in NASDAQ:CAST stock and on May 8, 2012, Chinacast Education Corporation announced that it received a notification from the staff of The NASDAQ Stock Market LLC (the "NASDAQ Staff") that the NASDAQ Staff has made a determination to delist Chinacast Education's securities.
Those who purchased shares of Chinacast Education Corporation (NASDAQ:CAST), have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego