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You must submit the settlement Proof form attached below, in order to participate in this settlement. There is a strict deadline of June 7, 2013 by which all claims must be submitted. The instructions for submitting are included in the Proof and the Notice files attached below for your download. DO NOT SEND THE FORMS TO THE SHAREHOLDERS FOUNDATION, INC.
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Lawsuit Overview
Settlement Overview
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July 9, 2013 - The court approved the settlement.
March 3, 2013 - The court preliminarily approved the settlement.
January 27, 2013 - A stipulation of settlement was filed by the parties.
June 4, 2012 - The court denied the defendants motion to dismiss.
April 20, 2012 - A motion to dismiss the second amended complaint was filed.
March 5, 2012 - A second amended complaint was filed.
January 30, 2012 - The court granted defendants' motion to dismiss. The plaintiffs were given leave to amend the complaint.
October, 24, 2011 - A motion to dismiss the amended consolidated complaint was filed.
September 8, 2011 - An amended consolidated complaint was filed.
May 6, 2011 - An investor in shares of Sino Clean Energy Inc (NASDAQ: SCEI now trading on the OTC sheets as SCEI) filed a lawsuit in the U.S. District Court for the Central District of California against Sino Clean Energy Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between April 6, 2009 and May 5, 2011.
According to the complaint the plaintiff alleges on behalf of investors who purchased the common stock of Sino Clean Energy Inc (NASDAQ: SCEI) between April 6, 2009 and May 5, 2011 that Sino Clean Energy Inc and its officers and directors violated federal securities laws by issuing materially inaccurate financial statements to the investing public between April 6, 2009 and May 5, 2011.
Sino Clean Energy Inc reported a substantial increase in its 12 months Total Revenue from $2.80 million in 2007 to $106.27 million in 2010. Its Net Income surged from $1.02 million in 2007 and a Net Loss of $34.82 million in 2009 to a Net Income of $48.01 million in 2010. Shares of Sino Clean Energy Inc (NASDAQ: SCEI) traded during 2010 as high as $8.85 per share but fell to under $3 recently. According to the Complaint, between April 25 and April 28, a report was disseminated allegedly showing little or no activity in the Company’s factories.
On April 25, rumors began circulating that a report showed that Sino Clean Energy Inc had overstated its revenues, net income, and operations.
On April 27, a version of the report was disseminated to subscribers of analyst firm Geoinvesting.
On April 28, analyst Alfred Little published a second version of the report which included more detailed factual allegations and Chinese tax filings allegedly showing that the Company had no or nearly no operations. The plaintiff alleges that on May 1, a further report was published showing that the Company’s Chairman may have violated U.S. and Chinese law by defrauding Chinese investors, exposing the Company to civil and criminal liability.
On May 3, Sino Clean Energy Inc released a letter to the investing public and said the “allegations made in these “reports” are false, misleading and reflect a general lack of understanding of [their] business”. Among other things, Sino Clean Energy Inc invited investors to view video evidence of activities in its plants.
On May 4, a report surfaced that the Company’s video evidence was allegedly inconsistent with meteorological conditions.
On May 5, Sino Clean Energy Inc announced “its intention to take action against those responsible for the malicious and fraudulent attacks on Sino Clean Energy Inc, which were orchestrated and conducted by or on behalf of certain short sellers.”
Sino Clean Energy Inc (NASDAQ: SCEI) shares closed on Friday at $2.10 per share.