SOURCE: Rosen Law Firm P.A.

Rosen Law Firm P.A.

April 25, 2011 23:16 ET

The Rosen Law Firm Representing Investors in Securities Class Action Filed Against ZST Digital Networks, Inc. - ZSTN

NEW YORK, NY--(Marketwire - Apr 25, 2011) - The Rosen Law Firm, P.A. today announced that it has filed a class action lawsuit on behalf of investors who purchased the securities of ZST Digital Networks, Inc. (NASDAQ: ZSTN) in the period from October 20, 2009 to April 21, 2011, to recover damages for ZST Digital shareholders from violations of the federal securities laws.

To join the ZST Digital class action, visit the firm's website at http://rosenlegal.com, or call Phillip Kim, Esq. or Jonathan Horne, Esq., toll-free, at 866-767-3653; you may also email pkim@rosenlegal.com or jhorne@rosenlegal.com for information on the class action. The case filed by the Rosen Law Firm is pending in the U.S. District Court for the Central District of California.

NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY CHOOSE TO DO NOTHING AT THIS POINT AND REMAIN AN ABSENT CLASS MEMBER.

The Complaint asserts violations of the federal securities laws against ZST Digital and its officers, directors, and underwriters for issuing materially false and misleading information in the Company's offering documents and in SEC filings. On April 21, 2011 a news report was published by a market analyst revealing a number of red flags of potential fraud at ZST Digital. Namely, in connection with the Company's fiscal 2009 and 2008 financial results, the report states that "SEC filings report revenues hundreds of times of what is reported" to the Chinese regulators and the filings show that the Company "paid zero tax in China, but reported substantial amounts to the SEC." The report also identifies a number of other allegations indicating that the Company may have misled investors about its customers. When this adverse information entered the market, the price of the Company's securities fell, damaging investors.

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today's date. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Phillip Kim, Esq. or Jonathan Horne, Esq. of The Rosen Law Firm, toll-free, at 866-767-3653, or via e-mail at pkim@rosenlegal.com or jhorne@rosenlegal.com. You may also visit the firm's website at http://rosenlegal.com.

The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation.

Contact Information

  • Contact Information:

    Phillip Kim, Esq.
    Jonathan Horne, Esq.
    The Rosen Law Firm P.A.
    275 Madison Avenue 34th Floor
    New York, New York 10016
    Tel: (212) 686-1060
    Weekends Tel: (917) 797-4425
    Toll Free: 1-866-767-3653
    Fax: (212) 202-3827
    Email Contact
    Email Contact
    www.rosenlegal.com