SOURCE: Dyer & Berens LLP

Dyer & Berens LLP

March 22, 2011 11:57 ET

Dyer & Berens LLP Files Class Action Lawsuit on Behalf of Investors Who Purchased ShengdaTech, Inc. Common Stock Between 3/15/10 and 3/15/11; Announces Upcoming Investor Deadline (SDTH)

DENVER, CO--(Marketwire - March 22, 2011) - Dyer & Berens LLP (www.DyerBerens.com) today announced that it has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of investors who purchased ShengdaTech, Inc. ("ShengdaTech" or the "Company") (NASDAQ: SDTH) common stock between March 15, 2010 and March 15, 2011, inclusive (the "Class Period"). 

What actions may I take at this time? If you purchased during the Class Period and wish to serve as a lead plaintiff, you must request appointment by the court no later than May 17, 2011. If you would like to discuss this action, the lead plaintiff process, or have any questions concerning this notice, please contact plaintiff's counsel, Jeffrey A. Berens, Esq. at (888) 300-3362 x302 or via email at jeff@dyerberens.com. Any member of the putative class may request a lead plaintiff appointment through counsel of its choice or may choose to do nothing and remain an absent class member. 

What are the allegations in the complaint? ShengdaTech engages in the development, manufacturing and marketing of nano precipitated calcium carbonate ("NPCC") products. The complaint alleges that, throughout the Class Period, defendants' public statements were materially false and misleading because they misrepresented and/or failed to disclose that: (i) ShengdaTech was operating with material deficiencies in its internal controls; (ii) ShengdaTech's financial statements, during at least 2010, were not fairly presented in conformity with GAAP; and (iii) based on the foregoing, defendants lacked a reasonable basis for their positive statements about ShengdaTech's revenues, expenses, income, margins, markets, growth, average selling prices and customers. On March 15, 2011, the Company issued a press release announcing that it had appointed a special committee of the Board of Directors to investigate "potentially serious discrepancies and unexplained issues relating to the Company and its subsidiaries' financial records identified by the Company's auditors" in the course of their examination of ShengdaTech's financial statements. As a result of defendants' false statements and omissions, ShengdaTech's stock price fell over 12%, closing at $3.55 on March 14, 2010, the day before trading in the Company's shares was suspended. Based upon the foregoing, the complaint charges ShengdaTech and certain of the Company's officers with violations of the Securities Exchange Act of 1934.

About Dyer & Berens LLP. The plaintiff is represented by Dyer & Berens LLP, which has expertise in prosecuting investor class actions involving financial fraud. The firm's extensive experience in securities litigation, particularly in cases brought under the Private Securities Litigation Reform Act, has contributed to the recovery of hundreds of millions of dollars for aggrieved investors. 

Contact Information

  • Contact:

    Jeffrey A. Berens
    Dyer & Berens LLP
    303 East 17th Avenue, Suite 300
    Denver, CO 80203
    Tel: (888) 300-3362 x302
    Email: Email Contact
    Website: www.DyerBerens.com