SOURCE: Milberg LLP

December 06, 2010 16:39 ET

Milberg LLP Announces the Filing of a Securities Fraud Class Action Lawsuit Against China Education Alliance, Inc.

NEW YORK, NY--(Marketwire - December 6, 2010) - A class action lawsuit was filed in the United States District Court for the Central District of California on behalf of purchasers of China Education Alliance, Inc. ("China Education Alliance" or the "Company") (NYSE: CEU) common stock from March 31, 2009, to November 29, 2010 (the "Class Period").

The complaint alleges that China Education Alliance violated the Securities Exchange Act by improperly reporting $24.9 million in revenue in its 2008 annual report, filed with the Securities and Exchange Commission, contradicting a report that the Company's main operating subsidiary filed with the Chinese authorities, which revealed less than $1 million in revenue.

On November 29, 2010, Kerrisdale Capital published a 30-page report citing evidence that China Education Alliance overstated its revenue and profit and called the Company "mostly a hoax." In reaction to the news, China Education Alliance shares fell 33.56% to close at $2.93 on November 29, 2010.

If you purchased China Education Alliance common stock during the Class Period, you may, no later than January 31, 2011, file a motion with the Court to appoint you lead plaintiff. A lead plaintiff is a representative party that directs the litigation, and will be the movant that the Court determines to have the largest financial interest in the litigation with claims typical of those of other class members and the ability to adequately represent the class. Your share in any recovery will not be enhanced by serving as a lead plaintiff. You do not need to move for lead plaintiff to recover as an absent class member. You may retain Milberg LLP, or other attorneys, for this action, but do not need to retain counsel to recover as an absent class member. The complaint in this action was not filed by Milberg.

Founded in 1965, Milberg has offices in New York, Los Angeles, Tampa, and Detroit. The Firm has litigated landmark cases and recovered billions for shareholders and consumers. Our website has additional information: (www.milberg.com).

You can contact the following attorney for more information:

Contact Information

  • Andrei V. Rado, Esq.
    Milberg LLP
    One Pennsylvania Plaza, 49th Fl.
    New York, NY 10119-0165
    Phone number: (800) 320-5081
    Email: contactus@milberg.com

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