Cohen Milstein Sellers & Toll PLLC Announces Investigation of Yuhe International, Inc.

Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether Yuhe International, Inc. (“Yuhe” or the “Company”) and certain of its officers, directors and/or underwriters made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and/or violated Sections 11, 12(a) (2) and 15 of the Securities Act of 1933.

Class action lawsuits have been filed in the U.S. District Courts for the Southern District of Florida, the Southern District of New York, and the Central District of California by other law firms on behalf of all purchasers of the common stock of Yuhe International, Inc. (NASDAQ: YUII) between December 31, 2009 and June 23, 2011, inclusive (the “Class Period”).

Yuhe International, Inc. is a supplier of chickens raised for meat production or broilers in China. The complaints allege that Yuhe and certain of its officers and/or directors (“Defendants”) misrepresented and/or failed to disclose that: (1) Yuhe's financial results as reported to the SEC for the fiscal years ended 2009 and 2010 were materially false and misleading; (2) Yuhe lied to investors about its purported acquisition of thirteen farms from Weifangshi Dajiang Qiye Group Co. Ltd. ("Dajiang"); and (3) Yuhe's business was not growing at the rate represented by Defendants.

On December 31, 2009, Yuhe filed an 8-K reporting that it had entered into an agreement to purchase thirteen farms from Dajiang for total consideration of approximately $15.2 million. On June 13, 2011, the website GeoInvesting.com issued a report revealing that, during a series of telephone interviews with Dajiang’s Chairman and General Manager, Xuejiang Zheng (“Zheng”), Zheng “categorically denied the farms had been sold to [Yuhe].” This was confirmed by Global Hunter Securities, one of the underwriters of the Company’s October 2010 offering, which subsequently suspended its coverage of Yuhe.

Although initially denying the allegations, by June 17, 2011, the Company admitted during a conference call that it had not purchased the farms from Dajiang after all. Instead, the Company claimed it had decided to purchase thirteen different farms with the same capacity as the Dajiang farms, for the same price as those farms, and stated that “[t]he company remained highly confident in its previously issued net profit guidance.” Yuhe shares fell to $1.2099 on June 17 before trading was halted.

On June 23, Yuhe reported that its auditor had terminated its relationship with the Company, “due to the Company’s management’s misrepresentation and failure to disclose material facts surrounding certain acquisition transactions and off-balance sheet related party transactions.”

Cohen Milstein encourages all investors who purchased Yuhe common stock, including investors who purchased pursuant to the Company’s offering on or about October 20, 2010, or former employees with information concerning this matter, to contact the firm.

If you are a Yuhe 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 purchased the common stock of Yuhe and wish to serve as lead plaintiff, you must move the Court no later than August 23, 2011 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, Philadelphia, and Chicago, 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 GaffneyCohen Milstein Sellers & Toll PLLC1100 New York Avenue, N.W.West Tower, Suite 500Washington, D.C. 20005Telephone: (888) 240-0775 or (202) 408-4600Email: stoll@cohenmilstein.com; tgaffney@cohenmilstein.com

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Yuhe (CE) (USOTC:YUII)
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