The Rosen Law Firm today announced that it has commenced an investigation into allegations that Telestone Technologies Corporation (“Telestone” or the “Company”) (NasdaqGS: TSTC) may have violated the federal securities laws by issuing false and misleading financial statements to investors.
On January 11, 2011, a financial analyst The Forensic Factor issued a report detailing alarming inconsistencies in Telestone’s financial statements and raising serious questions as to whether Telestone’s financial accounting complies with Generally Accepted Accounting Principles and whether much of the revenue reported by Telestone is genuine. In addition, the forensic report disclosed that one of Telestone’s major customers was not even incorporated at the time it claimed the relationship had begun. When the market learned of these serious allegations, the price of Telestone shares dropped substantially, damaging investors.
As a result of these allegations, the Rosen Law Firm is contemplating a class action lawsuit to recover investor losses caused by Telestone’s allegedly misleading financial statements.
If you purchased Telestone securities and would like further information concerning your legal rights or your ability to recover your investment losses, please contact Laurence Rosen, Esq. or Phillip Kim, Esq. toll-free at 866-767-3653 or email
or visit the website at
The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation.
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