Glancy Binkow & Goldberg LLP announces that a class action lawsuit has been filed in the United States District Court for the District of New Jersey on behalf of a class (the “Class”) comprising purchasers of the securities of Telestone Technologies Corporation (“Telestone” or the “Company”) (Other OTC:TSTC) between March 31, 2010, and April 16, 2013, inclusive (the “Class Period”).
Please contact Casey Sadler at (888) 773-9224 or (310) 201-9150, or at shareholders@glancylaw.com to discuss this matter. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
Telestone provides wireless local-access network technologies and solutions primarily in the People’s Republic of China. The Complaint alleges that the Company misrepresented that its financial statements were presented in accordance with Generally Accepted Accounting Principles and that its policy was to recognize revenues only if collectability was reasonably assured. However, the Complaint further alleges that defendants knew or recklessly disregarded and failed to disclose that: (1) in one of Telestone’s main segments, it had only collected 0.8%, 22.9%, and 21.5%, of its 2009, 2010, and 2011 revenues, respectively; (2) Telestone’s average collections period exceeds one year, even though payments were purportedly due upon customers’ acceptance of Telestone’s products or service; (3) Telestone only invoiced customers after it received payment, purportedly for tax reasons, and its China-filed tax returns claimed far less revenues than its financial statements filed with the U.S. Securities and Exchange Commission; (4) it is impossible for Telestone timely to collect its receivables; (5) as of December 31, 2009, over $26.6 million of Telestone’s accounts receivable were at least one year old, with the amounts increasing to $49.2 million and $66.6 million by December 31, 2010 and 2011, respectively; and (6), Telestone did not keep centralized records of its accounts receivable, and to obtain a purported accounting of its accounts receivable took two months’ work from a 10-member team.
If you are a member of the Class described above, you may move the Court no later April 3, 2015, to serve as lead plaintiff, if you meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Casey Sadler, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, at (310) 201-9150, by e-mail to shareholders@glancylaw.com, or visit our website at https://www.glancylaw.com. If you inquire by email, please include your mailing address, telephone number and number of shares purchased.
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