SinoHub Inc (AMEX: SIHI) Investor Securities Class Action Lawsuit 11/20/2012

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Company Name(s): 
SinoHub
Case Name: 
SinoHub Shareholder Class Action Lawsuit 11/20/2012
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
AMEX: SIHI
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
11/20/2012
Class Period Begin: 
05/17/2010
Class Period End: 
08/21/2012
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
01/21/2013
Date Settled: 
07/22/2015
Settlement Amount: 
$600,000
Deadline to Participate in Settlement: 
11/09/2015
Settlement Notice: 
Settlement Proof: 
Summary: 

December 14, 2016 - The court ordered the authorization of the distribution of the net settlement fund.

November 13, 2015 - The court held a final settlement hearing and approved the settlement, entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissing the action with prejudice.

July 22, 2015 - The court preliminarily approved the settlement.

June 26, 2015 - Parties filed a stipulation of settlement.

July 30, 2014 - The defendants filed motions to dismiss.

September 16, 2013 - The lead plaintiff filed an amended complaint.

March 4, 2013 - Lead plaintiff and lead counsel were appointed and all cases were consolidated.

July 30, 2014 - The defendants filed motions to dismiss.

September 16, 2013 - The lead plaintiff filed an amended complaint.

January 22, 2013 - Lead plaintiff motions were filed.

November 20, 2012 - An investor in shares of SinoHub Inc (AMEX: SIHI now trading on the OTC sheets as SIHI) filed a lawsuit in the U.S. District Court for the Southern District of New York against SinoHub Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements.

According to the complaint the plaintiff alleges on behalf of purchasers of SinoHub Inc common stock during the period between May 17, 2010 and August 21, 2012, that SinoHub Inc and certain of its officers and directors violated the Securities Exchange Act of 1934. More specifically, the plaintiff alleges that between May 17, 2010 and August 21, 2012, the defendants maintained that SinoHub Inc's internal controls over financial reporting were effective. However, so the lawsuit, as evidenced by the Company's correspondence with the U.S. Securities and Exchange Commission regarding the Company's internal controls, Defendants allegedly knowingly or recklessly implemented, or ignored the existence of, ineffective internal controls which ultimately resulted in the use of improper accounting procedures and the overstatement of the Company's financial statements and future earnings potential.

On March 30, 2012, SinoHub Inc (AMEX: SIHI) announced its unaudited financial results for the fourth quarter ended December 31, 2011 and audited results for the fiscal year ended December 31, 2011.

SinoHub Inc's stock price declined from $0.63 per share to $0.54 per share on March 30, 2012, a single day decline of 16%.

The plaintiff alleges, that SinoHub Inc continued to represent in its Form 10-K for 2011 that the Company had remediated its internal control problems and that SinoHub Inc's internal controls were now "effective."

Then on August 14, 2012, SinoHub Inc announced that it would be unable to file its Quarterly Report on Form 10-Q for June 30, 2012 within the prescribed time period. Over the next three trading days, SinoHub Inc's stock declined approximately 26%.

On August 21, 2012, SinoHub Inc announced that it would not file its Form 10-Q within the extension period. Over the next three trading days SinoHub Inc's stock price dropped by 20%.

Shares of SinoHub Inc have been delisted by the AMEX and are now trading under OTC: SIHI.

On November 20, 2012, shares of SinoHub Inc (OTC: SIHI) closed at $0.015.