China Electric Motor Inc (NASDAQ: CELM) Investor Securities Class Action Lawsuit 04/01/2011

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Company Name(s): 
China Electric Motor
Case Name: 
China Electric Motor Shareholder Class Action 04/01/2011
Case Status: 
Settlement Approved
Affected Securities
NASDAQ: CELM
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
04/01/2011
Class Period Begin: 
01/29/2010
Class Period End: 
03/30/2011
Court of Filing: 
U.S. District Court for the Central District of California
Deadline To File for Lead: 
05/31/2011
Date Settled: 
06/14/2013
Settlement Amount: 
$3,778,330
Deadline to Participate in Settlement: 
08/28/2013
Summary: 

November 5, 2014 - The court ordered the authorization of the distribution of the net settlement fund.

November 16, 2013 - The lead plaintiff filed a notice of appeal from the order awarding attorneys fees.

November 12, 2013 - The court approved the settlement, entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissed the action with prejudice.

June 14, 2013 - The court preliminarily approved the settlement.

May 3, 2013 - Parties filed a stipulation of settlement.

October 31, 2011 - Defendants filed a motion to dismiss.

September 2, 2011 - The lead plaintiff filed an amended consolidated complaint.

July 26, 2011 - Lead plaintiff and lead counsel were appointed and all cases were consolidated.

May 31, 2011 - Lead plaintiff motions were filed.

April 1, 2011 - An investor in shares of China Electric Motor Inc (NASDAQ: CELM now trading on the OTC sheets as CELM) filed a lawsuit in the U.S. District Court for the Central District of California against China Electric Motor Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between January 29, 2010 to March 30, 2011.

According to the complaint the plaintiff alleges on behalf of investors who purchased the securities of China Electric Motor Inc (NASDAQ: CELM) in the period from January 29, 2010 to March 30, 2011, that China Electric Motor Inc and certain of its officers and directors, and underwriters violated federal securities laws by issuing materially false and misleading information in China Electric Motor Inc’s public offering documents and in U.S. Securities and Exchange Commission (“SEC”) filings about China Electric Motor Inc’s financial condition and internal controls.

China Electric Motor Inc’s 12months Total Revenue rose from $15.95million in 2006 to $85.38million in 2009. Its Net Income rose from $1.96million in 2006 to $11.50million in 2009. China Electric Motor Inc reported for the first three quarters in 2010 a combined nine months Total Revenue of $79.69million with a combined nine months Net Income of $9.77million.

Shares of China Electric Motor Inc (NASDAQ: CELM) spiked during April 2010 to $9.44 per share.

CELM shares decreased from $4.99 per share on January to $2.91 on March 30, 2011.

Then March 31, 2011 China Electric Motor Inc (NASDAQ: CELM) announced that it has filed a Notification with the Securities and Exchange Commission its Annual Report on Form 10-K for the year ended December 31, 2010 will not be filed before its March 31, 2011 due date, nor will it be filed by April 15, 2011, the extended due date of the report.

China Electric Motor Inc said the delay in filing relates to possible discrepancies concerning its banking statements that were very recently identified by its auditors in the course of their audit of the consolidated financial statements for the fiscal year ended December 31, 2010. China Electric Motor Inc also said its Board of Directors has formed a Special Committee to investigate this matter and that the Special Committee has already notified the Staff of the Securities and Exchange Commission of the internal investigation.