The law firm of Lieff, Cabraser, Heimann & Bernstein, LLP announces that class action lawsuits have been brought on behalf of all persons who purchased the securities of ShengdaTech, Inc. (“ShengdaTech” or the “Company”) (Nasdaq: SDTH) between March 15, 2010 and March 15, 2011, inclusive (the “Class Period”).

“potentially serious discrepancies and unexplained issues relating to the Company and its subsidiaries’ financial records identified by the Company’s auditors.”
.If you purchased ShengdaTech securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than May 17, 2011.  A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation.  Your share of any recovery in this action will not be affected by your decision of whether to seek appointment as lead plaintiff.  You may retain Lieff Cabraser, or other attorneys, as your counsel in this action.

ShengdaTech shareholders who wish to learn more about this action and how to seek appointment as lead plaintiff may visit Lieff Cabraser’s website at http://www.lieffcabraser.com/cases.php?CaseId=452  or contact Sharon Lee of Lieff Cabraser toll free at (800) 541-7358.

Background on ShengdaTech Securities Fraud Class Litigation 

The actions, pending in the United States District Court for the Southern District of New York were brought against ShengdaTech and certain of its officers and directors for violations of the Securities Exchange Act of 1934.  ShengdaTech, headquartered in Shanghai, China, describes itself as a leading developer and manufacturer of nano precipitated calcium carbonate used as an additive in various products, including paint, paper, plastic, and rubber.

The actions allege that during the Class Period, defendants issued materially false and misleading information regarding ShengdaTech’s business and prospects.  Specifically, defendants misrepresented and/or failed to disclose that ShengdaTech lacked adequate internal and financial reporting controls and that its financial statements during at least 2010 were materially false and misleading and did not conform with U.S. GAAP.  As a result of defendants’ false and misleading statements, ShengdaTech’s stock traded at artificially inflated prices during the Class Period.

On March 15, 2011, ShengdaTech announced that it had appointed a special committee of the Board of Directors to investigate “potentially serious discrepancies and unexplained issues relating to the Company and its subsidiaries’ financial records identified by the Company’s auditors.”  ShengdaTech also disclosed that its audit committee had retained O’Melveny & Myers LLP as independent outside counsel, which had commenced an internal investigation, that the SEC had been notified about the investigation, and that it would not be able to file its 2010 Form 10-K in a timely manner.  Following these announcements, Nasdaq halted trading of ShengdaTech shares.

About Lieff Cabraser

Lieff, Cabraser, Heimann & Bernstein, LLP, with offices in San Francisco, New York and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.

Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs’ law firms in the nation.  In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs’ law firms in the United States to receive this honor for the last eight consecutive years.

For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.