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Murray, Frank & Sailer LLP Announces Investigation of Securities Fraud Claims Against ZST Digital Networks, Inc.

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^{Published in Science and Technology on Friday, May 13th 2011 at 12:51 GMT by Market Wire}  

NEW YORK--([ BUSINESS WIRE ])--MURRAY, FRANK & SAILER LLP is investigating securities fraud claims against ZST Digital Networks, Inc. (aZSTa or the aCompanya) (NASDAQ: ZSTN) and certain of its officers, on behalf of purchasers of ZST securities between October 20, 2009 to April 21, 2011, inclusive (the aClass Perioda).

"paid zero tax in China, but reported substantial amounts to the SEC."

The investigation concerns violations of the Securities Act of 1933 (the aSecurities Acta) and the Securities Exchange Act of 1934 (the aExchange Acta) that occurred when the Defendants issued materially false and misleading statements or omitted to state material information during the Class Period regarding ZSTa™s financial performance.

Specifically, it is alleged that during the Class Period, the Defendants made false and/or misleading statements and/or failed to disclose that the financial statements for fiscal years ending in December 31, 2008 and December 31, 2009. Further, it is alleged that as a result of the Defendantsa™ misstatements, ZSTa™s stock traded at artificially inflated prices throughout the Class Period.

On April 21, 2011, a report was published on a financial news website entitled Seeking Alpha. According to the report, ZSTa™s public filings with the Securities and Exchange Commission (aSECa) reported revenues ahundreds of timesa of what ZST reported to Chinese regulators. The report also indicated that ZST apaid zero tax in China, but reported substantial amounts to the SEC.a As a result of this release of this adverse information, the price of the Companya™s common stock plummeted. During 2010, ZST traded as high as over $10 per share, but the stock price fell from under $5 per share to as low as $2.60 after the report was published.

If you purchased ZST securities within the Class Period, and you wish to discuss this investigation, or have any questions concerning this notice or your rights or interests with respect to these matters, please contact us.