Ryan & Maniskas, LLP ( www.rmclasslaw.com/cases/watg) announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of Wonder Auto Technology, Inc. ("Wonder Auto" or the "Company") (NASDAQ: WATG) between May 14, 2008 and May 6, 2011, inclusive (the "Class Period").
For more information regarding this class action suit, please contact Ryan & Maniskas, LLP (Richard A. Maniskas, Esquire) toll-free at (877) 316-3218 or by email at firstname.lastname@example.org or visit: www.rmclasslaw.com/cases/watg.
The Complaint alleges that during the Class Period the Company violated federal securities laws by issuing materially false and misleading statements thereby artificially inflating the price of the Company’s securities. Specifically, (1) the Company improperly recognized revenue; (2) specifically, the Company’s subsidiaries improperly recorded its sales and costs of sales; (3) the Company failed to report that it had entered into several related-party transactions; (4) the Company lacked adequate internal and financial controls; and (5) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.
On March 1, 2011, the Company announced that its previously issued financial statements for fiscal years 2008 and 2009, as well as its interim reports for those periods "should no longer be relied upon due to a cutoff error regarding timing of revenue in such periods." On May 6, 2011, after the close of trading, NASDAQ halted the trading of Wonder Auto stock. On May 12, 2011, the Company announced that its Audit Committee had "undertaken an internal investigation concerning certain investment and acquisition transactions." On May 20, 2011, the Company stated that the Audit Committee's investigation will continue until at least June 2011 and was commenced "in response to a report alleging that the Company had engaged in several transactions without properly disclosing their related-party nature." Currently, shares of Wonder Auto are halted.