Wolf Haldenstein Adler Freeman & Herz LLP Commences Class Action Lawsuit on Behalf of New Energy Systems Group Investors

NEW YORK--(BUSINESS WIRE)--

On February 28, 2012, Wolf Haldenstein Adler Freeman & Herz LLP filed a class action lawsuit in the United States District Court, Southern District of New York, on behalf of all persons who purchased the common stock of New Energy Systems Group (“New Energy” or the “Company”) NEWN between April 15, 2010 and November 14, 2011, inclusive (the “Class Period”), against the Company and certain of the Company's current and former officers and directors, alleging fraud pursuant to Sections 10(b) and 20(a) of the Exchange Act [15 U.S.C. §§ 78j(b) and 78t(a)] and Rule 10b-5 promulgated thereunder by the SEC [17 C.F.R. § 240.10b-5] (the “Class”).

The case name is styled Santana v. Li, et al. A copy of the complaint filed in this action is available from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at www.whafh.com.

The complaint alleges that Defendants knew or recklessly disregarded numerous facts known to them before and during the Class Period concerning its profitability, the legitimacy of the Company's business and that the Company expected it would continually receive orders from its “loyal customers.” It is further alleged that Defendants issued statements in its SEC filings that were materially false and misleading. Specifically:

a) Defendants knew that New Energy did not have a loyal customer base and, therefore, knew that there was no reason to believe that the Company would continually receive orders;

b) Defendants knew that New Energy did not produce batteries that were sought after by the market;

c) Defendants hid the material adverse effect of counterfeit products on New Energy's business. The filings failed to state New Energy's inability to cease the counterfeiting of its products; and

d) the filings failed to state that increased competition had caused a permanent slowdown in sales.

On November 14, 2011, New Energy filed a Form 10-Q for the quarter ending September 30, 2011, in which the Company disclosed, among other things, a 42% decrease in year-over-year quarterly revenue and a customer lawsuit alleging, among other things, that its subsidiary would not accept returns of its faulty products.

In ignorance of the false and misleading nature of the statements described in the complaint, and the deceptive and manipulative devices and contrivances employed by said defendants, plaintiff and the other members of the Class relied, to their detriment, on the integrity of the market price of New Energy common stock. Had plaintiff and the other members of the Class known the truth, they would not have purchased said common stock, or would not have purchased them at the inflated prices that were paid.

If you purchased New Energy common stock during the Class Period, you may request that the Court appoint you as lead plaintiff by April 10, 2012. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wolf Haldenstein, or other counsel of your choice, to serve as your counsel in this action.

Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has approximately 70 attorneys in various practice areas; and offices in Chicago, New York City and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.

If you wish to discuss this action or have any questions, please contact Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575-0735 (Gregory M. Nespole, Esq. or Derek Behnke), via e-mail at classmember@whafh.com or visit our website at www.whafh.com. All e-mail correspondence should make reference to New Energy.