Tongxin International Ltd.
Robbins Umeda LLP Announces Investigation of Tongxin International Ltd.
Robbins Umeda LLP has commenced an investigation into Tongxin International Ltd. (OTC: TXIC.PK) concerning possible violations of state and federal securities laws.
Tongxin, through its subsidiary, Hunan Tongxin Enterprise Co. Ltd., designs, develops, manufactures, sells, and services engineered vehicle body structures for trucks and light vehicles in the People’s Republic of China. The Company was founded in 1984 and is based in Birmingham, Michigan.
Robbins Umeda LLP’s investigation concerns whether Tongxin issued false and misleading statements to the public regarding its true financial condition and business prospects. Specifically, our investigation concerns whether Tongxin failed to properly account for its related-party transactions resulting in violations of Generally Accepted Accounting Principles and improper maintenance of internal controls to safeguard the company’s assets.
On June 30, 2010, Tongxin requested an extension to file its Form 20-F for the year ending December 31, 2009, because it was in the process of obtaining documentation to support and determine how to treat certain related-party transactions. On July 19, 2010, Tongxin received a NASDAQ Staff Deficiency Letter stating that the company was no longer in compliance with NASDAQ Listing Rules due to its failure to file a Form 20-F for the period ended December 31, 2009. NASDAQ delisted Tongxin’s stock and suspended trading on the opening of the business day October 14, 2010. On this news, Tongxin’s stock dropped $0.84 to close at $2.86 per share on October 12, 2010. Tongxin’s stock continued to decline on news that Rudy Wilson, Chairman of the Board and Chief Executive Officer and Jackie Chang, Chief Financial Officer and Chief Accounting Officer, were being removed from their positions with the company and that the company had filed a civil suit against Chang alleging her wrongful transfer of company funds for the benefit of her and Wilson.
If you purchased Tongxin between May 15, 2009 and December 14, 2010, and would like more information about your rights as a shareholder, please contact attorney Gregory E. Del Gaizo at 800-350-6003 or by e-mail at firstname.lastname@example.org.