[January 17, 2019]

Robbins Arroyo LLP: China TechFaith Wireless Communication Technology Limited (CNTF) Sued for Misleading Investors

Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of China TechFaith (News - Alert) Wireless Communication Technology Limited (NasdaqGS: CNTF) filed a class action complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between July 12, 2018 and December 19, 2018. China TechFaith designs and develops specialized mobile handsets for consumers and enterprises in the People's Republic of China and internationally.

View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/china-techfaith-wireless-communication-technology-limited/

China TechFaith Accused of Misrepresenting the Sale of Its Subsidiar

According to the complaint, on July 12, 2018, China TechFaith revealed to investors that its subsidiary, TechFaith Wireless Technology Group Limited, would sell its 100% ownership in its wholly-owned subsidiary, Charm Faith Limited, for RMB710 million. China TechFaith further represented that the company would use the proceeds from the sale for further development of its ruggedized smart devices business and the reinvestment into new office space development opportunities. However, the agreement was not as lucrative as the company led investors to believe. On December 20, 2018, China TechFaith revealed that operating expenses for the first half of 2018 more than quintupled as compared to the same period last year, and as a result of the lower transaction valuation of the sale of its subsidiary, the company recognized an impairment loss of $62.2 million. On this news, China TechFaith's stock plummeted over 35% to close at $1.07 per share on December 20, 2018.

China TechFaith Shareholders Have Legal Options

Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, [email protected], or via the shareholder information form on the firm's website.

Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Sign up for our FREE portfolio monitoring service, Stock Watch.

Attorney Advertising. Past results do not guarantee a similar outcome.

View source version on businesswire.com: https://www.businesswire.com/news/home/20190117005705/en/

[ Back To TMCnet.com's Homepage ]