NIVS IntelliMedia Technology Group, Inc.
ROBBINS GELLER RUDMAN & DOWD LLP FILES CLASS ACTION SUIT AGAINST NIVS INTELLIMEDIA TECHNOLOGY GROUP, INC.
April 12, 2011 – Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/nivs/) today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of NIVS IntelliMedia Technology Group, Inc. (“NIVS”) (AMEX:NIV) common stock during the period between March 24, 2010 and March 25, 2011 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from March 29, 2011. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/nivs/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges NIVS and certain of its officers and directors with violations of the Securities Exchange Act of 1934. NIVS is an integrated consumer electronics company that designs, manufactures, markets and sells intelligent audio and video products and mobile phones in China, Greater Asia, Europe and North America.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and financial results. Specifically, the Company’s financial statements were in violation of Generally Accepted Accounting Principles (“GAAP”). As a result of defendants’ false statements, NIVS’s stock traded at artificially inflated prices during the Class Period, reaching a high of $3.92 per share on March 29, 2010.
On March 24, 2011, NYSE Regulation, Inc., a subsidiary of NYSE Euronext (the holding company that owns and operates the American Stock Exchange), unexpectedly announced that it was implementing a trading halt in the common stock of NIVS and evaluating both the need for certain public disclosures and the overall suitability for continued listing of the Company’s common stock. On March 25, 2011, the Company filed a Form 8-K with the SEC that disclosed that the Audit Committee of the Board of Directors had approved the dismissal of NIVS’s independent auditor, MaloneBailey LLP (“MaloneBailey”). Further, the Company indicated that on March 23, 2011, MaloneBailey had provided a letter to the Audit Committee advising that the it had encountered issues and concerns that, in its view, required additional information and procedures, including the initiation of an independent investigation, in order to verify the accuracy of certain transactions and balances recorded on the Company’s financial statements and records. Moreover, MaloneBailey informed the Company in a letter of resignation that it was “unable to rely on management’s representations as they relate to previously issued financial statements and it could no longer support its audit opinion dated March 24, 2010, related to its audit of consolidated financial statements of the Company and its subsidiaries as of December 31, 2009, included in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2009.” According to the Company, MaloneBailey “based its resignation on what it characterized [as] illegal acts involving the Company’s accounting records and bank statements and discrepancies in accounts receivable.”
According to the complaint, during the Class Period, defendants made false and/or misleading statements and failed to disclose material adverse facts about the Company’s business, operations, and prospects, including that: (i) the Company had inaccurately recorded certain transactions; (ii) there were discrepancies in the Company’s accounts receivables; (iii) the Company was engaged in illegal acts involving the Company’s accounting records and bank statements; (iv) as a result, the Company’s financial results were not prepared in accordance with GAAP; (v) the Company lacked adequate internal controls; and (vi) as a result of the foregoing, the Company’s financial results were false and misleading at all relevant times.
Plaintiff seeks to recover damages on behalf of all purchasers of NVIS common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller, a 180-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Robbins Geller Web site (http://www.rgrdlaw.com) has more information about the firm.