China Intelligent Lighting and Electronics, Inc.
China Intelligent Lighting and Electronics, Inc. Securities Settlement
The lawsuit was settled for $631,600 in cash. This is a partial settlement of the Litigation with MaloneBailey LLP (MaloneBailey), WestPark Capital, Inc. (WestPark), Richard A. Rappaport (Rappaport)1, and Kempisty & Company, P.C. (Kempisty) (together, Settling Defendants). The following is a summary of the proceedings in the lawsuit: ‘This case was brought as a class action alleging that between June 18, 2010 and March 24, 2011, inclusive, the Defendants made certain materially false and misleading statements in CIL Registration Statements and Prospectuses filed with the Securities and Exchange Commission in June, July and December 2010. Specifically, the Complaint alleges that in connection with these Offering Documents, CIL overstated its revenues, gross profits, net income, total assets, and shareholders equity for fiscal years 2008 and 2009, and as a result, the prices of CIL common stock were inflated. MaloneBailey and Kempisty audit opinions certified CIL financial statements and WestPark Capital, Inc., operated by Rappaport, and Rodman & Renshaw underwrote the Offerings.’