SOURCE: Brower Piven, A Professional Corporation

January 05, 2011 18:15 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $100,000 From Investment in Tongxin International, Ltd. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the March 4, 2011 Lead Plaintiff Deadline

STEVENSON, MD--(Marketwire - January 5, 2011) -  Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Eastern District of New York on behalf of purchasers of the common stock of Tongxin International, Ltd. ("Tongxin" or the "Company") (PINKSHEETS: TXIC) during the period between May 15, 2009 and December 14, 2010, inclusive (the "Class Period").

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than March 4, 2011 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff.

The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period that the Company's financial results, as reported, failed to properly account for certain related-transactions, and as a result, the Company would be unable to file its audited consolidated financial statements for the FY 2009; the Company would not have earnings growth, particularly in the South East Asian markets, or meet expected earnings guidance; the Company's top officers were conspiring to embezzle Company funds; and that the Company lacked adequate internal controls. According to the complaint, as and after the Company gradually disclosed problems previously hidden from the public, including the Company's failure to timely file with the SEC its required audited consolidated financial statements, the delisting of the Company's stock on NASDAQ, the Company's lowered expected revenues for fiscal year 2010, removal of the Company's key executives, and the announcement of the Company's legal proceedings against their former Chief Executive Officer and Chief Financial Officer for embezzlement, the value of Tongxin stock declined substantially.

If you have suffered a net loss for all transactions in Tongxin International, Ltd. common stock during the Class Period, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 60 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Stevenson, Maryland
    410/415-6616
    Email Contact