Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether Qiao Xing Universal Resources, Inc. (“Qiao Xing” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

Class action lawsuits have been filed in the U.S. District Courts for the District of the Virgin Islands and the Southern District of New York by other law firms on behalf of purchasers of the common stock of Qiao Xing Universal Resources, Inc. (NASDAQ OTC: XINGF) between August 23, 2010 and April 16, 2012, inclusive (the “Class Period”).

The complaints allege that defendants failed to disclose that in June 2011 the Company's then Chief Executive Officer and Chairman, Rui Lin Wu, transferred Company funds to a bank account under his control.

On April 8, 2011 Qiao Xing reported that its Chief Financial Officer had resigned “effective immediately,” providing no reason for the sudden resignation. On November 22, 2011, the Company announced that Rui Lin Wu had resigned as Chairman and Chief Executive and was replaced by his son. At the same time, Qiao Xing reported that one of its directors had resigned. The Company claimed that the resignations were both for “personal reasons and are not related to any disagreement with the Company regarding financial, operational or other practices.”

On April 16, 2012, NASDAQ halted trading in Qiao Xing's shares. On April 20, the Company announced that its Audit Committee had begun an investigation into “a transfer of funds from a Company subsidiary’s bank account to an account controlled by the Company’s former Chairman” adding that “[t]he transaction was undertaken without notice to or approval of the Audit Committee or the Board of Directors.” The Company further stated that the Audit Committee had ordered immediate return of the funds and had notified NASDAQ and the SEC of the investigation. In addition, Qiao Xing reported that the Audit Committee would also “[review] certain transactions involving the pledge or transfer of Company assets and…confirm cash balances of the Company’s bank accounts.” Finally, Qiao Xing reported that the Chairman of its Audit Committee, Dr. Edward Tsai had resigned on April 18 and that Tsai’s resignation “is occasioned by his disagreement with the other directors of the Company on the conduct of the internal investigation . . . .” The price of Qiao Xing shares fell from $0.635 to $0.18 when trading resumed on May 10.

Cohen Milstein encourages all investors who purchased Qiao Xing common stock between August 23, 2010 and April 16, 2012 or former employees with information concerning this matter to contact the firm.

If you are a Qiao Xing shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein’s Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at stoll@cohenmilstein.com. If you wish to serve as lead plaintiff, you must move the Court no later than June 26, 2012 to request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may retain Cohen Milstein Sellers & Toll PLLC or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.

Cohen Milstein Sellers & Toll PLLC has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Chicago, Philadelphia and West Palm Beach, and is active in major litigation pending in federal and state courts throughout the nation.

The firm’s reputation for excellence has repeatedly been recognized by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen Milstein Sellers & Toll PLLC has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total over a billion dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.

If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:

Steven J. Toll, Esq.
Tyler Gaffney
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
West Tower, Suite 500
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email: stoll@cohenmilstein.com; tgaffney@cohenmilstein.com

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