BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased ChinaCache International Holdings Ltd. (“ChinaCache” or the “Company”) (NASDAQ: CCIH) securities between April 10, 2015 and May 17, 2019, inclusive (the “Class Period”). ChinaCache investors have until August 12, 2019 to file a lead plaintiff motion.
Investors suffering losses on their ChinaCache investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to firstname.lastname@example.org.
On April 29, 2019, the Company disclosed that it could not timely file its 2018 annual report “because U.S. GAAP audited financial statements of the [Company] are not yet available.”
Then, on May 17, 2019, the Company revealed that both the Company and its Chief Executive Officer (“CEO”), Song Wang, were under criminal investigation in Beijing for bribery and that the CEO had resigned.
On this news, the Company’s share price fell $0.22, or nearly 20%, to close at $0.88 on May 17, 2019, thereby injuring investors.
Then, on May 23, 2019, the Company announced that it had received a NASDAQ Notification Letter regarding the Company’s inability to comply with NASDAQ listing requirements as a result of the delay in filing of its 2018 20-F, along with questions about the ongoing investigation into enterprise bribery as well as recent changes to the Company’s independent registered public accounting firm.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) ChinaCache and its CEO were engaged in enterprise bribery; (2) the foregoing conduct placed ChinaCache and its CEO at a heightened risk of criminal investigation and enforcement action by government authorities, which would foreseeably disrupt the Company's operations; and (3) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you purchased shares of ChinaCache, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at www.howardsmithlaw.com.
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