San Diego, CA -- (SBWIRE) -- 07/10/2012 -- Certain directors and officers of Chinacast Education Corporation are under the investigation for current long term investors in NASDAQ:CAST shares over possible breaches of fiduciary duties.
Investors who are current long term investors in Chinacast Education Corporation (NASDAQ:CAST) shares, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm for current long term investors in Chinacast Education Corporation (NASDAQ:CAST) stocks follows a lawsuit filed earlier by shareholders who purchased NASDAQ:CAST shares only between February 14, 2011 and April 2, 2012. The investigation on behalf of current long term investors in Chinacast Education Corporation (NASDAQ:CAST) stocks, including also those who purchased within or prior to the above stated time frame, concerns whether certain Chinacast Education officers and directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the Central District of California the plaintiff alleges that ChinaCast Education Corporation 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, 2012 because 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