Noah Education Holdings (NYSE: NED) Investor Securities Class Action Lawsuit 10/27/2008

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Company Name(s): 
Noah Education Holdings
Case Name: 
Noah Education Holdings Shareholder Class Action Lawsuit 10/27/2008
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
NYSE: NED
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
10/27/2008
Class Period Begin: 
10/18/2007
Class Period End: 
11/19/2007
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
12/29/2008
Date Settled: 
05/27/2011
Settlement Amount: 
$1,750,000
Deadline to Participate in Settlement: 
05/06/2011
Summary: 

May 27, 2011 - 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.

February 15, 2011 - The court preliminarily approved the settlement.

February 8, 2011 - The notice of appeal was withdrawn.

February 8, 2011 - Parties filed stipulation of settlement.

April 29, 2010 - The lead plaintiff filed a notice of appeal.

March 31, 2010 - The court granted the the defendants' motion to dismiss and closed the case.

June 8, 2009 - Defendants filed a motion to dismiss.

April 8, 2009 - The lead plaintiff filed an amended consolidated complaint.

March 9, 2009 - The lead plaintiff and lead counsel were appointed and all cases were consolidated.

December 30, 2008 - Additional lead plaintiff motions were filed.

December 29, 2008 - Lead plaintiff motions were filed.

November 3, 2008 - Another investor filed a complaint.

October 27, 2008 - An investor in the shares of Noah Education Holdings Ltd (NYSE: NED) filed a lawsuit in the U.S. District Court for the Southern District of New York against Noah Education Holdings Ltd over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between October 19, 2007 and November 19, 2007.

According to the complaint the plaintiff alleges that Noah Education Holdings Ltd and the underwriters of its IPO violated the Securities Act. Specifically the complaint alleges that on or about September 24, 2007, Noah Education Holdings Ltd filed a Form F-1 Registration Statement (the “Registration Statement”) with the SEC for the Offering and on or about October 18, 2007, the Prospectus with respect to the Offering (the “Prospectus”), which forms part of the Registration Statement, became effective and more than 9.8 million shares of Noah Education Holdings Ltd’s ADSs were sold to the public at $14.00 per ADS, thereby raising more than $137 million.

The shareholder accuses that the Registration Statement and Prospectus failed to disclose that Noah Education Holdings Ltd was experiencing an increase in raw materials costs which had negatively impacted its earnings. Then, on November 19, 2007, Noah Education issued a press release announcing its financial results for the quarter ended September 30, 2007, where Noah Education Holdings Ltd reported that its gross profit margins had dramatically declined from 59.4% in the same period the prior year to 50.2% in the quarter and “an increase in the purchasing cost of certain raw material components of DLDs such as flash chips and memory boards, during July and August.” As a result of this news the price of Noah Education Holdings Ltd ADSs dropped from $12.46 per ADS to $6.72 per ADS on extremely heavy trading volume, so the lawsuit.