Securities Class Action Filed Against Telestone Technologies Corp.
Violations of federal securities laws as a result of a series of materially false statements. According to the Complaint, throughout the Class Period, Telestone reportedly earned almost all of its revenues from sales to the three largest Chinese telecommunications providers — China Unicom, China Mobile, and China Telecom — the so-called Big 3. The Complaint alleges that Telestone only collected a small fraction of its purported sales to the Big 3, and internally determined that the Big 3 were routinely breaching their contractual obligations to Telestone and that there was little Telestone could do about it. The lawsuit also alleges that the market gradually learned that there were collectability issues with Telestone’s revenues when its accounts receivable ballooned, leading to drops in Telestone’s share price of 19.0% on May 15, 2012, 14.8% on November 19, 2012 and 64.2% on June 3, 2013. Filed in D.N.J.
Lead Plaintiff Deadline: The deadline to file for lead plaintiff in this action is 4/3/2015.
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