| Company: | ZST Digital Networks, Inc |
| Ticker Symbol: | ZSTN |
| Class Period: | Oct-20-09 to Apr-21-11 |
| Date Filed: | Apr-20-11 |
| Lead Plaintiff Deadline: | Jun-19-11 |
| Court: | Central District of California |
| Allegations: | |
The Complaint asserts violations of the federal securities laws against ZST Digital and its officers, directors, and underwriters for issuing materially false and misleading information in the Company's offering documents and in SEC filings.
On April 21, 2011 a news report was published by a market analyst revealing a number of red flags of potential fraud at ZST Digital. Namely, in connection with the Company's fiscal 2009 and 2008 financial results, the report states that "SEC filings report revenues hundreds of times of what is reported" to the Chinese regulators and the filings show that the Company "paid zero tax in China, but reported substantial amounts to the SEC." The report also identifies a number of other allegations indicating that the Company may have misled investors about its customers. When this adverse information entered the market, the price of the Company's securities fell, damaging investors.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
