SinoHub Inc (PINK:SIHI) Investor files Lawsuit over alleged False and Misleading Statements

Dec. 18, 2012 - PRLog -- An investor in shares of SinoHub Inc (PINK:SIHI, formerly NYSE-SIHI) filed a lawsuit in the U.S. District Court for the Southern District of New York against SinoHub Inc over alleged securities laws violations in connection with certain allegedly false and misleading statements.

If you purchased shares of SinoHub Inc (PINK:SIHI, formerly NYSE-SIHI) during the period between May 17, 2010 and August 21, 2012, you have certain options and there are short and strict deadlines running. Deadline: January 21, 2013. Investors in shares of SinoHub Inc (PINK:SIHI, formerly NYSE-SIHI), who purchased a large amount of shares between May 17, 2010 and August 21, 2012, should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

According to the complaint the plaintiff alleges on behalf of purchasers of SinoHub, Inc. common stock during the period between May 17, 2010 and August 21, 2012, that SinoHub Inc and certain of its officers and directors violated the Securities Exchange Act of 1934. More specifically, the plaintiff alleges that between May 17, 2010 and August 21, 2012, the defendants maintained that SinoHub's internal controls over financial reporting were effective. However, so the lawsuit, as evidenced by the Company's correspondence with the U.S. Securities and Exchange Commission regarding the Company's internal controls, Defendants allegedly knowingly or recklessly implemented, or ignored the existence of, ineffective internal controls which ultimately resulted in the use of improper accounting procedures and the overstatement of the Company's financial statements and future earnings potential.

On March 30, 2012, SinoHub, Inc. (NYSE Amex- SIHI) announced its unaudited financial results for the fourth quarter ended December 31, 2011 and audited results for the fiscal year ended December 31, 2011.

SinoHub's stock price declined from $0.63 per share to $0.54 per share on March 30, 2012, a single day decline of 16%.

The plaintiff alleges, that SinoHub continued to represent in its Form 10-K for 2011 that the Company had remediated its internal control problems and that SinoHub's internal controls were now "effective."

Then on August 14, 2012, SinoHub announced that it would be unable to file its Quarterly Report on Form 10-Q for June 30, 2012 within the prescribed time period. Over the next three trading days, SinoHub's stock declined approximately 26%.

On August 21, 2012,SinoHub announced that it would not file its Form 10-Q within the extension period. Over the next three trading days SinoHub's stock price dropped by 20%.

Shares of SinoHub, Inc. have been delisted by the NYSE and are now trading under PINK:SIHI.

On November 20, 2012, shares of SinoHub Inc (PINK:SIHI) closed at $0.015.

Those who purchased shares of SinoHub Inc (PINK:SIHI, formerly NYSE-SIHI) during the period between May 17, 2010 and August 21, 2012, have certain options and there are short and strict deadlines running. Deadline: January 21, 2013. Investors in shares of SinoHub Inc (PINK:SIHI, formerly NYSE-SIHI), who purchased a large amount of shares between May 17, 2010 and August 21, 2012, should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.