A class action has been filed in the United States District Court for the Central District of California on behalf of investors who purchased the securities of China Electric Motor, Inc. (NASDAQ: CELM) in the period from January 29, 2010 to March 30, 2011, to recover damages for violations of federal securities laws.

The Complaint asserts violations of the federal securities laws against China Electric Motor and its officers and directors, and underwriters for issuing materially false and misleading information in the Company's public offering documents and in SEC filings about the Company's financial condition and internal controls. On March 31, 2011 the Company issued an announcement stating that it would be unable to timely issue its fiscal year 2010 financial results because of "possible discrepancies concerning the Company's banking statements that were very recently identified by the Company's auditors in the course of their audit of the consolidated financial statements for the fiscal year ended December 31, 2010." As a result, China Electric Motor stated it had begun an internal investigation. Since March 30, 2011 trading in the Company's stock has been halted, rendering the Company's stock illiquid and damaging investors.

If you are a current shareholder and purchased during the period January 29, 2010 to March 30, 2011 and would like to discuss your options of exercising your rights as a shareholder, please contact us.

Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.