NEW YORK, June 17, 2019 /CNW/ -- Pomerantz LLP announces that a class action lawsuit has been filed against ChinaCache International Holdings Ltd. ("ChinaCache" or the "Company") (NASDAQ: CCIH) and certain of its officers. The class action, filed in United States District Court, for the Southern District of New York, and indexed under 19-cv-05485, is on behalf of a class consisting of all persons and entities other than Defendants who purchased or otherwise acquired ChinaCache securities between April 10, 2015 and May 17, 2019, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased ChinaCache securities during the class period, you have until August 12, 2019, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
ChinaCache is an investment holding company that provides content and application delivery services in the PRC. It purports to offer a portfolio of services and solutions to businesses, government agencies, and other enterprises to enhance the reliability and scalability of their online services and applications. China Cache's American depositary receipts ("ADRs") trade on the NASDAQ under the ticker symbol "CCIH."
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) ChinaCache and Song Wang ("Wang")—the Company's Chief Executive Officer ("CEO") and Chairman of the Board of Directors ("Chairman") at all relevant times—were engaged in enterprise bribery; (ii) the foregoing conduct placed ChinaCache and Wang at a heightened risk of criminal investigation and enforcement action by government authorities, which would foreseeably disrupt the Company's operations; and (iii) as a result, the Company's public statements were materially false and misleading at all relevant times.
On April 29, 2019, ChinaCache filed a Notification of Late Filing on Form NT 20‑F with the SEC, disclosing that the Company would delay filing its Annual Report for 2018 on Form 20-F (the "2018 20-F"). According to the Form NT 20-F, ChinaCache was delaying filing 2018 20-F "because U.S. GAAP [Generally Accepted Accounting Principles] audited financial statements of the [Company] are not yet available."
Then, on May 17, 2019, ChinaCache issued a press release disclosing that the Company and Wang were under criminal investigation by a government prosecutor office in Beijing for charges of enterprise bribery and that Wang had resigned from his position as the Company's CEO (the "May 2019 Press Release").
On this news, ChinaCache's ADR price fell $0.22 per share, or 20%, to $0.88 per share on May 17, 2019, before NASDAQ halted trading in ChinaCache ADRs at 11:12 a.m. Eastern Time.
On May 23, 2019, ChinaCache disclosed receipt of a NASDAQ Notification Letter concerning the Company's failure to comply with the NASDAQ listing requirements, citing the Company's delay in filing the 2018 20-F (the "NASDAQ Letter"). The NASDAQ Letter also posed several questions to the Company regarding the resignation of Grant Thornton China as the Company's independent registered public accounting firm ("IRPAF"), ChinaCache's engagement of Michael T. Studer CPA P.C. as the Company's new IRPAF, and the allegations of enterprise bribery against ChinaCache and Wang. According to the NASDAQ Letter, ChinaCache was required to submit its plan to regain compliance with the NASDAQ listing requirements, as well as to provide its responses to the NASDAQ Letter's questions, no later than May 31, 2019.
On May 31, 2019, ChinaCache filed a Report of Foreign Private Issuer on Form 6‑K with the SEC, wherein the Company disclosed that it had "terminated Michael T. Studer CPA P.C. as the Company's independent registered public accounting firm" (the "May 2019 6-K"). According to the May 2019 6-K, "[t]he decision was approved by the Company's Audit Committee" and "[t]he Company intend[ed] to appoint a new auditor in the near future." The May 2019 6-K also noted that "[t]he timing of the [Company's] new auditor's appointment is dependent on the status of its ongoing investigation."
Finally, on June 6, 2019, ChinaCache issued a press release announcing the resignation of Wang from the Company's Board of Directors.
Trading in ChinaCache ADRs on the NASDAQ remains halted as of the date this Complaint was filed.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
SOURCE Pomerantz LLP