SOURCE: Kaplan Fox & Kilsheimer LLP

May 12, 2011 18:23 ET

Kaplan Fox Files Securities Class Action on Behalf of Purchasers of China Integrated Energy, Inc. Common Stock During the Period March 31, 2010 Through April 20, 2011

NEW YORK, NY--(Marketwire - May 12, 2011) - Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) has filed a class action suit against China Integrated Energy, Inc. ("China Integrated Energy" or the "Company") (NASDAQ: CBEH) that alleges violations of the Securities Exchange Act of 1934 on behalf of purchasers of China Integrated Energy common stock during the period March 31, 2010 through April 20, 2011, inclusive, (the "Class").

The case is pending in the United States District Court for the Central District of California. A copy of the complaint may be obtained from Kaplan Fox or the Court.

The Complaint alleges that from the start and throughout the Class Period, the defendants made false and misleading statements and material omissions regarding China Integrated Energy's business, operations, management and the intrinsic value of China Integrated Energy, and caused Plaintiff and other members of the Class to purchase China Integrated Energy securities at artificially inflated prices.

The Complaint alleges that on March 16, 2011, the first disclosure of improper acquisitions and the wrongful transfer of cash by the Company to Gao Bo, the son of China Integrated Energy's CEO, emerged in a publicly circulated analyst report. Following the circulation of this analyst report, on March 16, 2011, China Integrated Energy's stock declined by $0.95 per share, or 16%, to close at $5 per share.

The Complaint further alleges that material facts adversely affecting the Company were then partially disclosed on March 23, 2011 when China Integrated Energy issued a letter to shareholders that purported to deny the allegations in the March 16, 2011 research report. According to the Complaint, although the March 23 shareholder letter falsely denied certain allegations, including one related party transaction, it also effectively corroborated certain other allegations that had been made, including that RMB 20 million had been paid for an interest in a Company that China Integrated Energy had then transferred to the CEO's son.

Then, on April 20, 2011 after the markets closed, the NASDAQ Stock Market announced that trading was halted in China Integrated Energy and "will remain halted until China Integrated Energy, Inc. has fully satisfied NASDAQ's request for additional information." The complaint further alleges that since the close of trading on April 20, 2011, the Company's stock has remained halted rendering it effectively worthless to its shareholders who are unable to sell the Company's stock even at the last closing price of $1.84 per share on April 20, 2011.

If you are a member of the proposed Class, you may move the court no later than May 24, 2011 to serve as a lead plaintiff for the Class. You need not seek to become a lead plaintiff in order to share in any possible recovery.

Plaintiff seeks to recover damages on behalf of the Class and is represented by Kaplan Fox & Kilsheimer LLP. Our firm, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions and actions involving financial fraud. For more information about Kaplan Fox & Kilsheimer LLP, or to review a copy of the complaint filed in this action, you may visit our website at www.kaplanfox.com.

Contact Information

  • If you have any questions about this Notice, the action, your rights, or your interests, please contact:
    Donald R. Hall
    KAPLAN FOX & KILSHEIMER LLP
    850 Third Avenue, 14th Floor
    New York, New York 10022
    (800) 290-1952
    (212) 687-1980
    Fax: (212) 687-7714
    E-mail address: dhall@kaplanfox.com

    Laurence D. King
    KAPLAN FOX & KILSHEIMER LLP
    350 Sansome Street, Suite 400
    San Francisco, California 94104
    (415) 772-4700
    Fax: (415) 772-4707
    E-mail address: lking@kaplanfox.com