Company Website: http://www.hfesq.com
NEW YORK -- (Business Wire)

Harwood Feffer LLP announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of Subaye, Inc. ("Subaye" or the "Company") (NASDAQ: SBAY) between December 29, 2010 and April 7, 2011, inclusive (the AClass Period≈).

No class has yet been certified in the above action. Class members will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than June 14, 2011 and be selected by the court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages to serve as a Lead Plaintiff. You may contact the Harwood Feffer LLP website (http://www.hfesq.com) or Samuel K. Rosen, directly, at srosen@hfesq.com to ask any questions you may have in that regard.

The Complaint alleges violations of the federal securities laws against Subaye and its officers and directors for issuing materially false and misleading financial statements to investors. On April 7, 2011, the Company disclosed that its auditor, PricewaterhouseCoopers Hong Kong (“PwC”), had resigned. PwC identified matters that may materially impact the fairness and reliability of Subaye’s quarterly financial information for the three months ended December 31, 2010 and may cause PwC to be unwilling to rely on management’s representations.

PwC was unable to obtain information and supporting documentation to verify: (a) cash settlements from sales agents to Subaye; (b) the end customer subscriptions for the Company’s services and the services rendered to the end customers; and (c) marketing and promotion activities performed by sales agents in return for fees paid to such agents and recorded as expenses of the Company. PwC also stated that Subaye provided insufficient explanations regarding commonalities between certain customers and vendors. Lastly, PwC could find no evidence of any business tax payments by the Company for services rendered in China.

Harwood Feffer has been representing individual and institutional investors for many years, serving as lead counsel in numerous cases in federal and state courts. Please visit the Harwood Feffer LLP website (http://www.hfesq.com) for more information about the firm.

If you purchased Subaye common stock during the Class Period, suffered a loss on those shares in excess of $100,000 and you wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact:

Attorney Advertising. © 2011 Harwood Feffer LLP. The law firm responsible for this advertisement is Harwood Feffer LLP (www.hfesq.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter.

Contacts:

Harwood Feffer LLP
Robert I. Harwood, Esq.
Samuel K. Rosen, Esq.
877-935-7400
212-935-7400
rharwood@hfesq.com
srosen@hfesq.com
http://www.hfesq.com

Source: Harwood Feffer LLP