An investor has sued China Energy Savings Technology, Inc. ("China Energy" or the "Company") (Nasdaq: CESV.PK) in federal court, accusing the company of securities law violations, Berman DeValerio Pease Tabacco Burt & Pucillo announced today.

Berman DeValerio (http://www.bermanesq.com) filed a class action on behalf of shareholders in the U.S. District Court for the Southern District of New York. The complaint, filed as 06-cv-3890 on May 22, 2006, seeks damages for violations of federal securities laws on behalf of all investors who acquired China Energy securities from April 21, 2005 through and including February 15, 2006 (the "Class Period").

To receive a copy of the complaint, you may contact the court, call the firm at (800) 516-9926 or go to http://www.bermanesq.com/pdf/ChinaEnergy-Cplt.pdf.

The lawsuit claims that China Energy and a number of individual defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 ("Exchange Act"), 15 U.S.C. Sections 78j(b) and 78t, and SEC Rule 10b-5, 17 C.F.R. Section 240.10b-5, promulgated thereunder.

Based in Hong Kong, China Energy develops, manufactures, and markets energy savings products to businesses in China.

According to the complaint, the defendants made materially false and misleading statements about China Energy's financial results during the Class Period, some contained in Securities and Exchange Commission ("SEC") filings. In particular, the complaint says defendants failed to disclose that: (a) insiders of the Company were engaged in massive self-dealing involving the Company's January 2006 private placement; and (b) the Company was in violation of SEC Rules regarding limitations on sales of restricted stock and, as a result of this violation, trading of the Company's stock would be halted by Nasdaq.

In addition, the complaint accuses the defendants of falsely stating that they had complied with the reporting requirement of the SEC and United States Generally Accepted Accounting Principles and had voluntarily complied with the reporting requirements of the U.S. Sarbanes-Oxley Act.

On February 15, 2006, as a result of the above-mentioned fraudulent activities, Nasdaq announced that trading in shares of China Energy had been halted, the complaint said.

If you acquired China Energy securities from April 21, 2005 through and including February 15, 2006, you may wish to contact the following attorneys at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.

Jeffrey C. Block, Esq.

Abigail R. Romeo, Esq.

Jonathan Simpson, Esq.

One Liberty Square

Boston, MA 02109

(800) 516-9926

law@bermanesq.com

If you wish to apply to be the lead plaintiff in this action, a motion on your behalf must be filed with the court no later than June 30, 2006. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action, or you may submit information online at http://www.bermanesq.com/Securities/Signup1.asp?caseid=574. Please note, you may also retain counsel of your choice and need not take any action at this time to be a class member.

Berman DeValerio Pease Tabacco Burt & Pucillo prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities and antitrust law violations. The firm has 37 lawyers in Boston, San Francisco, and West Palm Beach.

Contact: Abigail R. Romeo, Esq., (800) 516-9926

Source: prnewswire