Rigrodsky & Long, P.A. Appointed as Lead Counsel in Class Action on Behalf of China Security & Surveillance Technology, Inc. Shareholders

Rigrodsky & Long, P.A. Appointed as Lead Counsel in Class Action on Behalf of China Security & Surveillance Technology, Inc. Shareholders

On July 6, 2011, the Honorable Chancellor Leo E. Strine, Jr. of the Delaware Court of Chancery issued an Order appointing Rigrodsky & Long, P.A. as Lead Counsel in In re China Security & Surveillance Technology, Inc. Shareholders Litigation, Consol. C.A. No. 6279-CS.

The class action was commenced on behalf of the public shareholders of China Security & Surveillance Technology, Inc. (“CSST” or the “Company”) against the CSST and the its Board of Directors (the “Board” or “Individual Defendants”) arising from the proposed acquisition of the outstanding shares of CSST common stock for $6.50 per share in cash by the Company’s Chairman, Chief Executive Officer (“CEO”), and largest shareholder, Guoshen Tu (“Tu”) (the “Transaction”), in breach of the fiduciary duties that the Individual Defendants owe to the Company’s shareholders.

The class action alleged that the Transaction was the product of a flawed process that resulted from the Board’s failure to maximize shareholder value and deprived CSST’s public shareholders of the ability to participate in the Company’s long-term prospects.  Plaintiffs’ sought to enjoin the Transaction or, alternatively, rescind the Transaction in the event the defendants were able to consummate it.

On May 31, 2011, the Company filed a preliminary proxy statement (the “Preliminary Proxy”) with the United States Securities and Exchange Commission (the “SEC”) in connection with the Transaction.  As alleged in the class action, the Preliminary Proxy omitted material information about the Proposed Transaction that had to be disclosed to CSST shareholders to enable them to render an informed decision as to whether to vote their shares in favor of the Transaction.  Amongst other things, the Preliminary Proxy omitted material information with respect to the process and events leading up to the Transaction, as well as the opinion and analyses of CSST’s financial advisor, Imperial Capital, LLC.

As a result of Rigrodsky & Long, P.A.’s efforts, on July 8, 2011, the Company filed a Revised Preliminary Proxy Statement with the SEC that included additional information regarding: (a) the ranges of value observed by Nomura, financial advisor to the Special Committee; (b) the circumstances surrounding Nomura’s decision not to provide a fairness opinion to the Special Committee; (c) the circumstances surrounding Nomura’s resignation as financial advisor to the Special Committee; (d) the circumstances surrounding the engagement of Imperial Capital as the second financial advisor to the Special Committee; (e) the remuneration to be paid to Imperial Capital in connection with its engagement; and (f) the prospects for future business between Imperial Capital and the Company (collectively, the “July 8 Disclosures”).

Thereafter, on August 8, 2011, the Company made certain additional disclosures by filing a further Revised Preliminary Proxy Statement with the SEC (the “August 8 Disclosures”), which were made solely as a result of discussions with Lead Counsel.  The August 8 Disclosures, included, but were not limited to, additional information surrounding Tu’s discussions with CSST’s management and his offer for them to invest their Company stock in the investment vehicle for the Transaction, which would make them Rollover Stockholders.