Six weeks after CDM launched its initial public offering (IPO) on February 8 of this year, the New York Stock Exchange notified the company that its common stock was being delisted due to non-compliance with the exchange’s listing standards. According to StreetInsider.com, China Century’s independent accounting firm, MaloneBailey LLP (MB) formally resigned its engagement with the company because of discrepancies noted on customer confirmations and the auditor’s inability to directly verify China Century’s bank records.
As a result, MB stated that it can no longer support its opinions related to the financial statements as of December 31, 2009 and 2008. The U.S. Securities and Exchange Commission (SEC) has also initiated a formal investigation concerning material misstatements on China Century’s financial statements, including cash accounts and accounts receivable.
Class action succeeded in Jun 2013.
Business Insider: Two More Chinese Companies Come Under Fire From SEC Over Alleged Fraud, 14 Jun 2011
US District Court: Legal Document, 19 Jun 2013
China Century Dragon: Prospectus, 7 Feb 2011