San Diego, CA -- (SBWIRE) -- 02/09/2015 -- An investor, who purchased shares of Telestone Technologies Corporation (OTCMKTS:TSTC), filed a lawsuit in the U.S. District Court for the District of New Jersey over alleged violations of Federal Securities Laws by Telestone Technologies Corporation in connection with certain allegedly false and misleading statements made between March 31, 2010 and April 16, 2013.

Investors who purchased shares of Telestone Technologies Corporation (OTCMKTS:TSTC) have certain options and for certain investors are short and strict deadlines running. Deadline: April 3, 2015. OTCMKTS:TSTC investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

According to the complaint the plaintiff alleges on behalf of purchasers of Telestone Technologies Corporation (OTCMKTS:TSTC) common shares between March 31, 2010 and April 16, 2013, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between March 31, 2010 and April 16, 2013, Telestone Technologies Corporation reportedly earned almost all of its revenues from sales to the three largest Chinese telecommunications providers – China Unicom, China Mobile, and China Telecom – the so-called Big 3, while in fact, Telestone Technologies Corporation only collected a small fraction of its purported sales to the Big 3, and internally determined both that the Big 3 were routinely breaching their contractual obligations to Telestone Technologies Corporation and that there was little Telestone Technologies Corporation could do about it. The plaintiff alleged that revenues from sales to the Big 3 were thus not reasonably certain to be collectable, and should not have been recognize and that the market gradually learned that there were collectability issues with Telestone Technologies' revenues when its accounts receivable ballooned, leading to drops in TTelestone Technologies' share price of 19.0%, on May 15, 2012, 14.8%, on November 19, 2012, and 64.2% on June 3, 2013.

Telestone Technologies Corporation reported that its annual total Revenue declined from $131.65 million in 2010 to $109.06 million in 2011 and that its respective Net Income decreased from $24.95 million to $14.93 million. Shares of Telestone Technologies Corporation (OTCMKTS:TSTC) declined from as high as $19.94 per share to $0.001 per share on December 1, 2014.

On February 5, 2015, OTCMKTS:TSTC shares closed at $0.005.

Those who purchased shares of Telestone Technologies Corporation (OTCMKTS:TSTC) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com