Robbins Umeda LLP Announces an Investigation of ChinaCast Education
SAN DIEGO -- June 01, 2012
Shareholder rights firm Robbins Umeda LLP is investigating possible breaches
of fiduciary duty and other violations of the law by certain officers and
directors at ChinaCast Education Corporation (NASDAQ: CAST).
Robbins Umeda LLP's investigation focuses on whether the directors and
officers of ChinaCast harmed the company and investors by issuing improper
statements about the condition and future business prospects of the company.
In particular, it is alleged that ChinaCast misled the investing public and
failed to disclose known facts related to deficiencies in the company's
internal controls that allegedly permitted, among other things, the wrongful
transfer of $120 million in cash by Ron Chan Tze Ngon ("Mr. Chan"), the
company's Chairman and Chief Executive Officer, from bank accounts belonging
to ChinaCast's subsidiaries.
On April 2, 2012, the NASDAQ temporarily halted trading of the ChinaCast's
common stock. The very same day, ChinaCast disclosed on Form 8-K that it was
assessing the impact of Mr. Chan's improper actions on the company's "overall
business." As part of this disclosure, ChinaCast ominously warned that unless
still outstanding issues with Mr. Chan are resolved successfully, "there may
be a significant material adverse effect on its business, financial condition,
results of operations and business prospects." Since these allegations have
surfaced, ChinaCast has increasingly become the focus of costly public
scrutiny, while deficient internal controls and unresolved management disputes
at ChinaCast continue to threaten the company's business prospects and
intrinsic value for shareholders.
Concerned investors in ChinaCast stock have several potential options
available to them. If you invested in ChinaCast and would like more
information about your rights, please contact attorney Gregory E. Del Gaizo at
800-350-6003 or via the shareholder information form on our website.
Robbins Umeda LLP is a nationally recognized leader in securities litigation
and shareholder rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action lawsuits, and
has helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested. For more information, please go
Press release link:
Attorney Advertising. Past results do not guarantee a similar outcome.
Robbins Umeda LLP
Gregory E. Del Gaizo
(619) 525-3990 or Toll Free (800) 350-6003
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