Wolf Haldenstein Adler Freeman & Herz LLP Commences Class Action Lawsuit on Behalf of New Energy Systems Group Investors
February 29 2012 - 4:30PM
Business Wire
On February 28, 2012, Wolf Haldenstein Adler Freeman & Herz
LLP filed a class action lawsuit in the United States District
Court, Southern District of New York, on behalf of all persons who
purchased the common stock of New Energy Systems Group (“New
Energy” or the “Company”) (AMEX:NEWN) between April 15, 2010 and
November 14, 2011, inclusive (the “Class Period”), against the
Company and certain of the Company’s current and former officers
and directors, alleging fraud pursuant to Sections 10(b) and 20(a)
of the Exchange Act [15 U.S.C. §§ 78j(b) and 78t(a)] and Rule 10b-5
promulgated thereunder by the SEC [17 C.F.R. § 240.10b-5] (the
“Class”).
The case name is styled Santana v. Li, et
al. A copy of the complaint filed in this action is
available from the Court, or can be viewed on the Wolf Haldenstein
Adler Freeman & Herz LLP website at www.whafh.com.
The complaint alleges that Defendants knew or recklessly
disregarded numerous facts known to them before and during the
Class Period concerning its profitability, the legitimacy of the
Company’s business and that the Company expected it would
continually receive orders from its “loyal customers.” It is
further alleged that Defendants issued statements in its SEC
filings that were materially false and misleading.
Specifically:
a) Defendants knew that New Energy did not have a loyal customer
base and, therefore, knew that there was no reason to believe that
the Company would continually receive orders;
b) Defendants knew that New Energy did not produce batteries
that were sought after by the market;
c) Defendants hid the material adverse effect of counterfeit
products on New Energy’s business. The filings failed to state New
Energy’s inability to cease the counterfeiting of its products;
and
d) the filings failed to state that increased competition had
caused a permanent slowdown in sales.
On November 14, 2011, New Energy filed a Form 10-Q for the
quarter ending September 30, 2011, in which the Company disclosed,
among other things, a 42% decrease in year-over-year quarterly
revenue and a customer lawsuit alleging, among other things, that
its subsidiary would not accept returns of its faulty products.
In ignorance of the false and misleading nature of the
statements described in the complaint, and the deceptive and
manipulative devices and contrivances employed by said defendants,
plaintiff and the other members of the Class relied, to their
detriment, on the integrity of the market price of New Energy
common stock. Had plaintiff and the other members of the Class
known the truth, they would not have purchased said common stock,
or would not have purchased them at the inflated prices that were
paid.
If you purchased New Energy common stock during the Class
Period, you may request that the Court appoint you as lead
plaintiff by April 10, 2012. A lead plaintiff is a representative
party that acts on behalf of other class members in directing the
litigation. In order to be appointed lead plaintiff, the Court must
determine that the class member’s claim is typical of the claims of
other class members, and that the class member will adequately
represent the class. Under certain circumstances, one or more class
members may together serve as “lead plaintiff.” Your ability to
share in any recovery is not, however, affected by the decision
whether or not to serve as a lead plaintiff. You may retain Wolf
Haldenstein, or other counsel of your choice, to serve as your
counsel in this action.
Wolf Haldenstein has extensive experience in the prosecution of
securities class actions and derivative litigation in state and
federal trial and appellate courts across the country. The firm has
approximately 70 attorneys in various practice areas; and offices
in Chicago, New York City and San Diego. The reputation and
expertise of this firm in shareholder and other class litigation
has been repeatedly recognized by the courts, which have appointed
it to major positions in complex securities multi-district and
consolidated litigation.
If you wish to discuss this action or have any questions, please
contact Wolf Haldenstein Adler Freeman & Herz LLP at 270
Madison Avenue, New York, New York 10016, by telephone at (800)
575-0735 (Gregory M. Nespole, Esq. or Derek Behnke), via e-mail at
classmember@whafh.com or visit our website at www.whafh.com. All
e-mail correspondence should make reference to New Energy.
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