ZST Digital Networks Inc (NASDAQ: ZSTN) Investor Securities Class Actioni Lawsuit 05/06/2011

If you purchased shares of ZST Digital Networks Inc (NASDAQ: ZSTN), you might have certain options and should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
ZST Digital Networks
Case Name: 
ZST Digital Networks Shareholder Class Action Lawsuit 05/06/2011
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NASDAQ: ZSTN
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
05/06/2011
Class Period Begin: 
10/20/2009
Class Period End: 
04/21/2011
Court of Filing: 
U.S. District Court for the Central District of California
Deadline To File for Lead: 
06/24/2011
Date Settled: 
03/27/2013
Settlement Amount: 
$1,700,000
Deadline to Participate in Settlement: 
07/22/2013
Summary: 

October 9, 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.

March 27, 2013 - The court preliminarily approved the settlement.

February 1, 2013 - Parties filed a stipulation of settlement.

August 7, 2012 - The court granted in part and denied in part the defendants' motions to dismiss. The first and second causes of action, under the Securities Act, are dismissed without leave to amend as against all defendants. The third and fourth causes of action, brought under the Exchange Act, are dismissed without leave to amend as certain defendants. In all other respects, the motions are denied.

June 1, 2012 - Another defendant filed a motion to dismiss.

April 27, 2012 - The defendants filed motions to dismiss.

March 9, 2012 - The lead plaintiff filed an amended complaint.

November 4, 2011 - The defendants filed motions to dismiss.

September 23, 2011 - The lead plaintiff filed a consolidated complaint.

July 14, 2011 - The lead plaintiff and lead counsel were appointed.

June 24, 2011 - Lead plaintiff motions were filed.

April 25, 2011 - An investor in shares of ZST Digital Networks Inc (NASDAQ: ZSTN) filed a lawsuit in the U.S. District Court for the Central District of California against ZST Digital Networks Inc over alleged violations of Federal Securities Laws.

According to the complaint the plaintiff alleges on behalf of investors who purchased the securities of ZST Digital Networks Inc (NASDAQ: ZSTN) in the period from October 20, 2009 to April 21, 2011, that ZST Digital Networks Inc and certain of its officers, directors, and underwriters violated Federal Securities Laws between October 20, 2009 to April 21, 2011 by issuing materially false and misleading information in ZST Digital Network Inc's offering documents and in SEC filings.

Shares of ZST Digital Networks Inc (NASDAQ: ZSTN) traded during 2010 as high as over $10 per share, but fell from under $5 per share to as low as $2.60 after on April 21, 2011, a market analyst published a news report revealing a number of red flags of fraud at ZST Digital Networks Inc.

Namely, in connection with ZST Digital Networks Inc’s fiscal 2009 and 2008 financial results, the report states that “SEC filings report revenues hundreds of times of what is reported” to the Chinese regulators and the filings show that ZST Digital Networks Inc “paid zero tax in China, but reported substantial amounts to the SEC.” The report also identifies a number of other allegations indicating that ZST Digital Networks Inc has misled investors about its customers. These revelations shocked the market, and caused the price of ZST Digital Networks Inc’s stock to fall.