SOURCE: Milberg LLP

March 30, 2011 16:35 ET

Milberg LLP Announces the Filing of Securities Fraud Class Action Lawsuits Against ShengdaTech, Inc.

NEW YORK, NY--(Marketwire - March 30, 2011) -  Class action lawsuits were filed in the United States District Court for the Southern District of New York on behalf of purchasers of ShengdaTech, Inc. ("ShengdaTech") (NASDAQ: SDTH) securities from March 15, 2010, through March 15, 2011, inclusive (the "Class Period").

The complaints allege that ShengdaTech made materially false and misleading statements, and failed to disclose adverse facts about the Company's business. Specifically, Defendants did not disclose to shareholders that the Company experienced material deficiencies in the system of internal control over its financial reporting and that ShengdaTech's financial statements, during at least 2010, were not recorded accurately.

On March 15, 2011, ShengdaTech announced in a press release that it "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." In reaction to the announcement, NASDAQ halted trading of ShengdaTech shares at $3.55.

If you purchased ShengdaTech securities during the Class Period you may, no later than May 17, 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 be a lead plaintiff to recover in a class action; you can 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 (www.milberg.com) has additional information.

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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