March 11, 2013 - The court approved the settlement, entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissed the action with prejudice.
November 19, 2012 - The court preliminarily approved the settlement.

October 15, 2012 - Parties filed a stipulation of settlement.

April 6, 2012 - The court granted in part and denied in part the defendant's motion to dismiss.

January 10, 2012 - The defendant filed a motion to dismiss.

December 5, 2011 - The plaintiffs filed a second amended consolidated complaint.

November 14, 2011 - The court granted the motion to dismiss of one defendant without prejudice.

October 11, 2011 - The court denied the defendant's motion to dismiss.

July 1, 2011 - The defendant filed a motion to dismiss.

May 2, 2011 - The plaintiffs filed an amended consolidated complaint.

March 1, 2011 - The lead plaintiff and lead counsel were appointed and all cases were consolidated.

January 31, 2011 - Lead plaintiff motions were filed.

December 2, 2010 - An investor in China Education Alliance Inc (NYSE: CEU now trading on the OTC sheets as CEAI) filed a lawsuit in the U.S. District Court for the Central District of California against China Education Alliance Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between March 31, 2009 and November 29, 2010.

According to the complaint the plaintiff alleges that China Education Alliance Inc and certain of its officers and directors violated the Securities Exchange Act of 1934 by misrepresenting between March 31, 2009 and November 29, 2010 China Education Alliance's financial performance. China Education Alliance Inc's 12 month Total Revenue went from $8.32 million in 2006 to $36.97 million in 2009. Its Net Income went from $2.63 million in 2006 to $15.21 million in 2009. For the first nine months in 2010 China Education Alliance reported a combined nine months Total Revenue of $33.85 million with a combined nine months Net Income of $13.18 million. The plaintiff alleges that the amounts of revenue that China Education Alliance in reported in its annual reports for 2008 and 2009 filed with the U.S. Securities and Exchange Commission were materially false and misleading.

Shares of CEU traded during January 2010 as high as over $7 per share but lost value during mid 2010 and traded in July as low as $3.70 per share. Then CEU shares climbed to over $5.50 in October and November. Then on November 29 a report by Kerrisdale Capital Management LLC was made public in which Kerrisdale Capital Management LLC represented evidence that China Education Alliance Inc is allegedly fabricating its SEC financial statements. Kerrisdale Capital Management LLC said that ‘believe that the company’s revenue and profit are highly overstated in its SEC filings and that the company is mostly a hoax’. Kerrisdale Capital Management LLC said their evidence includes that the company’s websites do not work, that the company’s websites receive a fraction of the visitor traffic generated by comparable sites, that they hired an investigator to visit the company’s training center in Harbin and found it to be barren of desks and teaching equipment, that they provide a video where they present a slideshow of the empty building, that the company’s local filings to the Chinese government show that the online business generated less than $1 million in revenue in 2008, that the company’s financials are not believable when compared to publicly traded comparable companies, and that China Education Alliance has had four low quality, non-reputable auditors since going public in 2004.

China Education Alliance Inc said it categorically denies all allegations made in the report by Kerrisdale Capital Management.

Shares of CEU fell on November 29 from $4.38 to as low as $2.45 per share. Then on December 2 China Education Alliance Inc announced that on November 5, 2010 the Company's auditor, Sherb & Co., LLP also performed confirmation procedures on most of the Company's bank balances in the People's Republic of China, but Sahm Adrangi from Kerrisdale Capital Management LLC said in a statement that “such confirmation procedures in no way vindicate the company of fraud” and that they believe that many companies in China can find a way to show inflated bank balances to their auditors, and satisfy “confirmation procedures”. Sahm Adrangi said that China Education Alliance does not have business assets that can generate the revenue and net income that it reports in its SEC filings and that they stand by their report that China Education Alliance is defrauding investors and has fabricated its SEC financial statements.” CEU shares closed last weeks trading at $3.45 per share.