SAN DIEGO--(BUSINESS WIRE)--Robbins Umeda LLP, a shareholder rights litigation firm, announces that a class action lawsuit has been filed on behalf of all persons or entities who purchased the common stock of NIVS IntelliMedia Technology Group, Inc. (AMEX: NIV) between March 24, 2010 and March 25, 2011 (the "Class Period").
NIVS engages in the design, manufacture, marketing, and sale of consumer electronic products. NIVS is based in Huizhou, Guandgdong, China and is incorporated in Delaware.
The lawsuit alleges that during the Class Period, NIVS violated federal securities laws by issuing material misrepresentations to the investing public concerning its business, operations, and prospects. Specifically, defendants made false and/or misleading statements and/or failed to disclose discrepancies in the company's accounts receivables, that the company was engaged in improper acts involving its accounting records and bank statements, and that the company's financial results did not comply with Generally Accepted Accounting Principles.
On March 24, 2011, trading of NIVS shares was unexpectedly halted. On March 25, 2011, NIVS filed a Form 8-K with the U.S. Securities and Exchange Commission stating its independent auditor, Malone Bailey LLP, had resigned. According to NIVS, Malone Bailey submitted its resignation on March 24, 2011, advising that it had encountered issues and concerns that, in their view, required additional information and procedures, including the initiation of an independent investigation, to verify the accuracy of certain transactions and balances recorded on the company's financial statements and records. According to NIVS, Malone Bailey "based its resignation on what it characterized [as] illegal acts involving the Company's accounting records and bank statements and discrepancies in accounts receivable."
If you purchased NIVS stock during the Class Period, you have until May 28, 2011, to move for lead plaintiff. To discuss your shareholder rights, please contact attorney Gregory E. Del Gaizo at 800-350-6003 or via the shareholder information form on our website.
Robbins Umeda LLP represents individual and institutional shareholders in derivative, direct, and class action lawsuits. The law firm's skilled litigation teams include former federal prosecutors, former defense counsel from top multinational corporate law firms, and career shareholder rights attorneys. For more information, please go to http://www.robbinsumeda.com.
Press release link: http://www.robbinsumeda.com/shareholders-rights-blog/nivs/
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