Roy Jacobs & Associates Announces Investigation on Behalf of Purchasers of shares of China Integrated Energy Inc., including Purchasers in the November 6, 2009 Share Offering (“CBEH”)
NEW YORK--(BUSINESS WIRE)--Roy Jacobs & Associates announces that it is investigating China Integrated Energy, Inc. (NASDAQ:CBEH - News) on behalf of purchasers of the Company’s securities from November 6, 2009, the date when it closed an offering of 5 million common shares providing the Company with $26.9 million in proceeds from the offering (the “Offering”), through April 20, 2011, when the NASDAQ Stock Market halted trading in the Company’s shares (the "Class Period"). There are credible allegations that Company issued false and misleading financial statements to investors because it concealed related-party transactions.
For further information please contact Roy Jacobs & Associates toll-free at 1-888-884-4490, or by e-mail at rjacobs@jacobsclasswlaw.com.
On March 16, 2011, Sinclair Upton Research published a report alleging that China Integrated Energy concealed transactions between the Company and its officers and directors that had the effect of funneling cash for personal gain. The report also said that China Integrated Energy misrepresented its business prospects and concealed the fact that the Company's C.E.O. had been funneling money to corporations owned by his son.
On March 23, 2011, the Company issued a rebuttal, in which it denied most of Sinclair Upton's allegations, but conceded that it had engaged in an undisclosed related party transaction with the CEO's 22 year old son. After the Company's rebuttal, the stock price fell once again, damaging investors.
As a result, shares declined by 15.97%, and declined an additional 24.6% the next day, to close at $3.77 per share on March 17, 2011. Thereafter, the Company’s independent auditor, and the law firm retained as Special Counsel by the Audit Committee to investigate the allegations against the Company resigned, citing an inability to obtain accurate information from management. Thereafter the outside Company director who was Chairman of the Audit Committee also resigned, citing the inability of the Audit Committee to effect its investigation.
If you purchased China Integrated Energy shares in the Offering, which closed on November 6, 2009, or otherwise in the Class Period, or, purchased your shares prior to November 6, 2009 and still hold your shares, and wish to discuss your rights, please contact Roy L. Jacobs. Mr. Jacobs will be glad to speak with you without any cost or obligation.