SHAREHOLDER LAWSUITGot this.....
Shareholder Suits
Deer and Sino Clean Energy, which both used reverse mergers, have been sued by investors in actions handled by the Rosen Law Firm PA in New York that cite Alfred Little reports. The suit against Deer, filed on April 29 in federal court in Los Angeles, says the company misrepresented its financial performance and business prospects. The Sino Clean Energy action, filed in federal court in Los Angeles on May 6, alleges that the company issued materially inaccurate financial statements.
The two firms are among at least 20 U.S.-listed Chinese companies targeted by lawsuits filed this year, according to the Stanford Law School Securities Class Action Clearinghouse.
Deer said in a statement May 2 that the shareholder lawsuit was further evidence of “attempted manipulation” and that it will seek sanctions against the law firm if the complaint isn’t withdrawn. Sino Clean Energy said in a quarterly report filed last month that the shareholder suit is “without merit.”
The company also announced a “special dividend” on May 25, granting shareholders the right to a portion of any judgment or settlement of its case against Little and the websites.
From this; https://www.businessweek.com/news/2011-06-07/suing-alfred-little-signals-chinese-company-attack-on-shorts.html
Looks like the shareholders lawsuits against the company is part of the game. So, if thats the case here, it explains why a shareholder would spend money on launching a lawsuit without any proof that the company did anything wrong.