ChinaCast Education Corporation
Robbins Umeda LLP Announces an Investigation of ChinaCast Education Corporation
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). Concerned shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Gregory E. Del Gaizo at (800) 350-6003.
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.
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.