Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against NIVS IntelliMedia Technology Group, Inc.
April 12 2011 - 12:39PM
Business Wire
Robbins Geller Rudman & Dowd LLP (“Robbins Geller”)
(http://www.rgrdlaw.com/cases/nivs/) today announced that a class
action has been commenced in the United States District Court for
the Southern District of New York on behalf of purchasers of NIVS
IntelliMedia Technology Group, Inc. (“NIVS”) (AMEX:NIV) common
stock during the period between March 24, 2010 and March 25, 2011
(the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from March 29, 2011. If you wish to discuss
this action or have any questions concerning this notice or your
rights or interests, please contact plaintiff’s counsel, Darren
Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via
e-mail at djr@rgrdlaw.com. If you are a member of this class, you
can view a copy of the complaint as filed or join this class action
online at http://www.rgrdlaw.com/cases/nivs/. Any member of the
putative class may move the Court to serve as lead plaintiff
through counsel of their choice, or may choose to do nothing and
remain an absent class member.
The complaint charges NIVS and certain of its officers and
directors with violations of the Securities Exchange Act of 1934.
NIVS is an integrated consumer electronics company that designs,
manufactures, markets and sells intelligent audio and video
products and mobile phones in China, Greater Asia, Europe and North
America.
The complaint alleges that during the Class Period, defendants
issued materially false and misleading statements regarding the
Company’s business and financial results. Specifically, the
Company’s financial statements were in violation of Generally
Accepted Accounting Principles (“GAAP”). As a result of defendants’
false statements, NIVS’s stock traded at artificially inflated
prices during the Class Period, reaching a high of $3.92 per share
on March 29, 2010.
On March 24, 2011, NYSE Regulation, Inc., a subsidiary of NYSE
Euronext (the holding company that owns and operates the American
Stock Exchange), unexpectedly announced that it was implementing a
trading halt in the common stock of NIVS and evaluating both the
need for certain public disclosures and the overall suitability for
continued listing of the Company’s common stock.
On March 25, 2011, the Company filed a Form 8-K with the SEC
that disclosed that the Audit Committee of the Board of Directors
had approved the dismissal of NIVS’s independent auditor,
MaloneBailey LLP (“MaloneBailey”). Further, the Company indicated
that on March 23, 2011, MaloneBailey had provided a letter to the
Audit Committee advising that it had encountered issues and
concerns that, in its view, required additional information and
procedures, including the initiation of an independent
investigation, in order to verify the accuracy of certain
transactions and balances recorded on the Company’s financial
statements and records. Moreover, MaloneBailey informed the Company
in a letter of resignation that it was “unable to rely on
management’s representations as they relate to previously issued
financial statements and it could no longer support its audit
opinion dated March 24, 2010, related to its audit of consolidated
financial statements of the Company and its subsidiaries as of
December 31, 2009, included in the Company’s annual report on Form
10-K for the fiscal year ended December 31, 2009.” According to the
Company, MaloneBailey “based its resignation on what it
characterized [as] illegal acts involving the Company’s accounting
records and bank statements and discrepancies in accounts
receivable.”
According to the complaint, during the Class Period, defendants
made false and/or misleading statements and failed to disclose
material adverse facts about the Company’s business, operations,
and prospects, including that: (i) the Company had inaccurately
recorded certain transactions; (ii) there were discrepancies in the
Company’s accounts receivables; (iii) the Company was engaged in
illegal acts involving the Company’s accounting records and bank
statements; (iv) as a result, the Company’s financial results were
not prepared in accordance with GAAP; (v) the Company lacked
adequate internal controls; and (vi) as a result of the foregoing,
the Company’s financial results were false and misleading at all
relevant times.
Plaintiff seeks to recover damages on behalf of all purchasers
of NIVS common stock during the Class Period (the “Class”). The
plaintiff is represented by Robbins Geller, which has expertise in
prosecuting investor class actions and extensive experience in
actions involving financial fraud.
Robbins Geller, a 180-lawyer firm with offices in San Diego, San
Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and
Atlanta, is active in major litigations pending in federal and
state courts throughout the United States and has taken a leading
role in many important actions on behalf of defrauded investors,
consumers, and companies, as well as victims of human rights
violations. The Robbins Geller Web site (http://www.rgrdlaw.com)
has more information about the firm.
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