China Intelligent Lighting & Electronics Inc (AMEX: CIL) Investor Securities Class Action Lawsuit 03/31/2011

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Company Name(s): 
China Intelligent Lighting & Electronics
Case Name: 
China Intelligent Lighting & Electronics Shareholder Class Action Lawsuit 03/31/2011
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
AMEX: CIL
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
03/31/2011
Class Period Begin: 
06/18/2010
Class Period End: 
03/24/2011
Court of Filing: 
U.S. District Court for the Central District of California
Deadline To File for Lead: 
05/31/2011
Date Settled: 
09/09/2014
Settlement Amount: 
$631,600
Deadline to Participate in Settlement: 
02/04/2015
Summary: 

September 9, 2014 - The court preliminary approved the settlement.

June 26, 2014 - Parties filed a stipulation of settlement.

August 19, 2013 - The court granted the defendants' motion to dismiss cross-claim without prejudice.

August 16, 2013 - Defendants filed order for joint stipulation of voluntary dismissal without prejudice of cross-claims against certain co-defendants.

July 12, 2013 - Plaintiffs filed motion to certify class and appoint class representatives and class counsel.

January 3, 2013 - Defendants filed motion to dismiss amended cross-claim.

December 3, 2012 - Defendants filed an amended cross-claim against other defendants.

October 17, 2012 - Defendants filed a cross-claim against other defendants.

September 5, 2012 - The court granted in part and denied in part defendants' motions to dismiss.

June 4, 2012 - More cases were consolidated.

May 7, 2012 - Defendants filed motions to dismiss.

March 16, 2012 - The lead plaintiffs filed an amended consolidated complaint on behalf of investors who purchased China Intelligent Lighting and Electronics Inc (AMEX: CIL) common shares between June 18, 2010 and March 24, 2011. The plaintiffs allege that the defendants violated the Securities Act of 1933 by issuing false and misleading statements between June 18, 2010 and March 24, 2011.

February 16, 2012 - The court granted in part and denied in part defendants' motions to dismiss and dismissed the amended complaint with leave to amend.

October 24, 2011 - Another defendant filed a motion to dismiss.

October 21, 2011 - Defendants filed motions to dismiss.

September 6, 2011 - The lead plaintiffs filed an amended consolidated complaint.

July 7, 2011 - Lead plaintiffs and lead counsel were appointed and all cases were consolidated.

May 31, 2011 - Lead plaintiff motions were filed.

March 31, 2011 - An investor in shares of China Intelligent Lighting and Electronics Inc (AMEX: CIL now trading on the OTC sheets as OTC: CILE) filed a lawsuit in the U.S. District Court for the Central District of California against China Intelligent Lighting and Electronics Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between June 18, 2010 and March 29, 2011.

According to the complaint the plaintiff alleges on behalf of investors who purchased the securities of China Intelligent Lighting and Electronics Inc (AMEX: CIL) during the period from June 18, 2010 through March 29, 2011, that China Intelligent Lighting & Electronics Inc, certain of its officers and directors, and underwriters violated federal securities laws by issuing materially false and misleading information in its public offering documents.

China Intelligent Lighting and Electronics Inc’s 12 months Total Revenue increased from $16.55 million in 2007 to $59.26 million in 2009. Its Net Income rose from $2.21 million in 2007 to $.758 million in 2009. For the first two quarters in 2010 China Intelligent Lighting and Electronics Inc reported a combined six months Total Revenue of $33.39 million with a combined six months Net Income of $2.8 million.

Shares of China Intelligent Lighting and Electronic Inc (AMEX: CIL) traded as high as $3.30 during November 2010 but fell to almost $2 during March 2011. Then on March 24, 2011 trading in China Intelligent Lighting and Electronics Inc’s stock has been halted.

On March 29, 2011 China Intelligent Lighting and Electronics Inc issued an announcement revealing that its auditor MaloneBailey LLP had resigned and that MaloneBailey LLP had withdrawn its prior audit opinion of China Intelligent Lighting and Electronics Inc’s financial statements. MaloneBailey LLP said it "believed that the accounting records of China Intelligent Lighting and Electronics Inc have been falsified, which constitutes an illegal act." MaloneBailey LLP also found that the accounting discrepancies could indicate a material error in previously issued financial statements. MaloneBailey LLP also stated that it could no longer rely on management's representations. China Intelligent Lighting and Electronics Inc also disclosed that it is the subject of a formal U.S. Securities and Exchange Commission (“SEC”) investigation.

On April 1, 2011 China Intelligent Lighting and Electronics Inc disclosed that its Annual Report on Form 10-K for the year ended December 31, 2010 cannot be filed within the prescribed time period due to the termination of engagement with MaloneBailey, LLP as the Registrant’s independent registered public accounting firm.