The Law Office of Robbins Umeda LLP Announces Investigation of Tongxin International Ltd.
14 Janvier 2011 - 9:05PM
Business Wire
Robbins Umeda LLP has commenced an investigation into Tongxin
International Ltd. (OTC: TXIC) concerning possible violations of
state and federal securities laws.
Tongxin, through its subsidiary, Hunan Tongxin Enterprise Co.
Ltd., designs, develops, manufactures, sells, and services
engineered vehicle body structures for trucks and light vehicles in
the People's Republic of China. The Company was founded in 1984 and
is based in Birmingham, Michigan.
Robbins Umeda LLP's investigation concerns whether Tongxin
issued false and misleading statements to the public regarding its
true financial condition and business prospects. Specifically, our
investigation concerns whether Tongxin failed to properly account
for its related-party transactions resulting in violations of
Generally Accepted Accounting Principles and improper maintenance
of internal controls to safeguard the company's assets.
On June 30, 2010, Tongxin requested an extension to file its
Form 20-F for the year ending December 31, 2009, because it was in
the process of obtaining documentation to support and determine how
to treat certain related-party transactions. On July 19, 2010,
Tongxin received a NASDAQ Staff Deficiency Letter stating that the
company was no longer in compliance with NASDAQ Listing Rules due
to its failure to file a Form 20-F for the period ended December
31, 2009. NASDAQ delisted Tongxin's stock and suspended trading on
the opening of the business day October 14, 2010. On this news,
Tongxin's stock dropped $0.84 to close at $2.86 per share on
October 12, 2010. Tongxin's stock continued to decline on news that
Rudy Wilson, Chairman of the Board and Chief Executive Officer, and
Jackie Chang, Chief Financial Officer and Chief Accounting Officer,
were being removed from their positions with the company and that
the company had filed a civil suit against Chang alleging her
wrongful transfer of company funds for the benefit of her and
Wilson.
If you purchased Tongxin between May 15, 2009, and December 14,
2010, and would like more information about your rights as a
shareholder, please contact attorney Gregory E. Del Gaizo at
800-350-6003 or by e-mail at info@robbinsumeda.com.
Robbins Umeda LLP represents individual and institutional
shareholders in derivative, direct, and class action lawsuits. The
law firm's litigation teams include former federal prosecutors,
former defense counsel from top multinational corporate law firms,
and career shareholder rights lawyers. For more information, please
go to http://www.robbinsumeda.com.
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