The Rosen Law Firm Representing Investors in Securities Class Action Charging Subaye, Inc. With Securities Fraud-- SBAY

NEW YORK--(BUSINESS WIRE)--The Rosen Law Firm, P.A. today announced that it has filed a class action lawsuit on behalf of investors who purchased the securities of Subaye, Inc. (NYSE: SBAY) during the period from December 29, 2009 to April 7, 2011 (the “Class Period”), and is seeking to recover investors’ damages from violations of federal securities laws.

To join the Subaye class action, visit the Rosen Law Firm’s website at http://www.rosenlegal.com, or call Laurence Rosen, Esq. or Phillip Kim, Esq., toll-free, at 866-767-3653; you may also email [e-mail] or [e-mail] for information on the class action. The case is pending in the United States District Court for the Southern District of New York.

NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY CHOOSE TO DO NOTHING AT THIS POINT AND REMAIN AN ABSENT CLASS MEMBER.

The Complaint asserts violations of the federal securities laws against Subaye and its officers and directors for issuing materially false and misleading financial statements to investors. On April 7, 2011 the Company disclosed its auditor, PricewaterhouseCoopers Hong Kong (“PwC”) resigned. PwC identified matters that may materially impact the fairness and reliability of Subaye’s quarterly financial information for the three months ended December 31, 2010 and may cause PwC to be unwilling to rely on managements’ representations.

PwC’s was unable to obtain information and supporting documentation to verify: (a) cash settlements from sales agents to Subaye, (b) the end customer subscriptions for the Company’s services and the services rendered to the end customers, (c) marketing and promotion activities performed by sales agents in return for fees paid to such agents and recorded as expenses of the Company. PwC also stated that Subaye provided insufficient explanations regarding commonalities between certain customers and vendors. Lastly, PwC could find no evidence of any business tax payments by the Company for services rendered in China.

Since April 7, 2011 trading in the Company’s stock has been halted, rendering the Company’s stock illiquid and causing investors further damage.

If you wish to serve as lead plaintiff, you must move the Court no later than June 14, 2011. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Laurence Rosen, Esq. or Phillip Kim, Esq. of The Rosen Law Firm, toll-free, at 866-767-3653, or via e-mail at [e-mail] or [e-mail]. You may also visit the firm’s website at http://www.rosenlegal.com.

The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation.