NEW YORK, June 25, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at ChinaCast Education Corporation ("ChinaCast" or the "Company") (OTC Markets: CAST).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose known facts related to deficiencies in the Company's internal controls. The lack of oversight at ChinaCast purportedly enabled the Company's Chairman and Chief Executive Officer, Ron Chan Tze Ngon ("Mr. Chan"), to wrongfully transfer $120 million in cash from bank accounts belonging to Company subsidiaries.
On April 2, 2012, NASDAQ halted ChinaCast trading. The same day, ChinaCast disclosed on the Company's Form 8-K that "there may be a significant material adverse effect on its business, financial condition, results of operations and business prospects" as a result of Mr. Chan's alleged wrongful conduct.
After being delisted from NASDAQ, ChinaCast commenced trading on OTC Markets on June 25, 2012, with the Company's shares plummeting by 80.66% on their first day of being traded on the new listing.
Request more information now by clicking here: www.faruqilaw.com/CAST. There is no cost or obligation to you.
If you purchased ChinaCast securities between February 14, 2011 and April 2, 2012 and would like to discuss your legal rights, visit www.faruqilaw.com/CAST. You can also contact us by calling Juan Monteverde, Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [email protected], [email protected] or [email protected]. Faruqi & Faruqi, LLP also encourages anyone with information regarding Deckers' conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Juan Monteverde, Esq.
Richard Gonnello, Esq.
Francis McConville, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
SOURCE Faruqi & Faruqi, LLP