NEW YORK, NY--(Marketwire - January 10, 2011) - Bronstein, Gewirtz & Grossman, LLC announces that a class action has been filed in the United States District Court for the Eastern District of New York on behalf of those who purchased or otherwise acquired stock of Tongxin International, Ltd. ("Tongxin" or the "Company") (
The complaint accuses Tongxin and certain of its officers with violations of the Securities Act of 1934 by failing to disclose that: (i) The company failed to properly account for certain related transactions, and as a result, would be unable to file its audited consolidated financial statements for FY 2009; (ii) the Company would not have earning growth, particularly in the South East Asian markets, or meet expected earnings guidance; (iii) some of the Company's top officers were conspiring to embezzle Company funds; (iv) the Company lacked adequate internal control; and (v) the defendants lacked any reasonable basis for the positive statements about Tongxin's growth and future business prospects.
Shares of Tongxin common stock have fallen from a high of $6.16 per share to as low as $1.25 per share, representing a drop of more than 75%.
No Class has yet been certified in the above action. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact either Peretz Bronstein or Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email eitan@bgandg.com. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. March 4, 2011 is the deadline for investors to seek a lead plaintiff appointment.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate work, private securities offerings, and securities arbitration.
Contact Information:
Peretz Bronstein
or
Eitan Kimelman
Bronstein, Gewirtz & Grossman, LLC
212-697-6484