Wohl & Fruchter LLP Announces Investigation of Jiangbo Pharmaceuticals, Inc.
June 27 2011 - 8:00AM
Business Wire
The law firm of Wohl & Fruchter LLP announces that it has
commenced an investigation into potential financial misconduct at
Jiangbo Pharmaceuticals, Inc. (Jiangbo) (NASDAQ:JGBO).
Trading in Jiangbo’s common stock on The Nasdaq Global Market
was halted on May 31, 2011.
According to a Form 8-K issued by Jiangbo on June 7, 2011, the
independent members of Jiangbo’s audit committee announced their
immediate resignations on June 6, 2011.
In a letter dated June 6, 2011, the audit committee members
disclosed that Jiangbo had received a subpoena from the U.S.
Securities and Exchange Commission on March 26, 2011, and that the
audit committee had initiated an independent investigation in
response, assisted by the law firm of Cadwalader, Wichersham &
Taft (Cadwalader) and by Ernst & Young (China) Advisory Limited
(E&Y).
The audit committee’s June 6 letter further disclosed that its
independent members had made the decision to resign based on
management’s “clear and continuing lack of cooperation” with their
investigation, and further cited the manner and timing of the
company’s payments to Cadwalader and E&Y as raising “additional
serious concerns regarding the veracity or correctness of banking
information provided by” Jiangbo’s management. Accordingly, the
audit committee determined that it could no longer effectively
conduct its investigation, and reported that Cadwalader and E&Y
had withdrawn from their respective engagements.
Additional information is available at www.wohlfruchter.com/cases/jgbo.
Persons with relevant information, and shareholders with
questions about this investigation, are invited to contact our
Firm.
About Wohl & Fruchter
Wohl & Fruchter LLP represents plaintiffs in litigation
arising from fraud and other fiduciary breaches by corporate
managers, as well as other complex litigation matters. Please visit
our website, www.wohlfruchter.com, to learn more about our Firm, or
contact one of our partners.
This release may be deemed to constitute attorney
advertising.