2 Directors Still On Hook In China Alliance Investor Squabble

Law360, New York (April 9, 2012, 7:12 PM EDT) -- A California federal judge dismissed one director but refused to dismiss two others on Friday from a shareholder class action claiming educational training company China Education Alliance Inc. fraudulently overstated its revenues and profits, causing stock values to plunge. 

The three directors were also on the audit committee of China-based China Education Alliance, which kept two different sets of books — one for Chinese regulators and one for the U.S. Securities and Exchange Commission, the suit says. Whereas the Chinese books stated modest figures for revenues and profits, the U.S. figures were inflated...
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