Telestone Technologies Corporation provides wireless communications coverage solutions in the People’s Republic of China. The Company primarily provides its products through its national sales and services network.
In Jan 2011, The Forensic Factor alleged that the company has provided incomplete and/or inaccurate information to investors. They highlighted issues with the company’s cash flow, accounting policies, research expenditure, balance sheet and business partners – the company’s US distributor was incorporated 15 months after they claimed to have started the relationship.
The management failed to address the concerns in subsequent investor update calls and the company was delisted in Jul 2013. A class action complaint was filed against the company, and it was settled in Mar 2018.
The Forensic Factor: Telestone Technologies – A “RINO” in sheep’s clothing, 10 Jan 2011
Zero Hedge: More On The (Alleged) Telestone Technologies (TSTC) Fraud: Is The Wolf About To Shed Its Clothing?, 25 Jan 2011
Stanford Law School: Telestone Technologies Corporation Securities Litigation, 9 Mar 2018