The Rosen Law Firm Files Securities Class Action Charging China Agritech, Inc. with Securities Fraud --- CAGC

The Rosen Law Firm, P.A. today announced that it has filed a class action lawsuit on behalf of investors who purchased the common stock of China Agritech, Inc. (“China Agritech” or the “Company”) (NASDAQ: CAGC) during the period from February 8, 2010 through February 3, 2011 (the “Class Period”). The lawsuit seeks to recover damages for investors from violations of the federal securities laws.

To join the China Agritech class action, visit the Rosen Law Firm’s website at http://www.rosenlegal.com, or call Laurence Rosen, Esq. or Phillip Kim, Esq., toll-free, at 866-767-3653; you may also email lrosen@rosenlegal.com or pkim@rosenlegal.com for information on the class action. The case is pending in the U.S. District Court for the Central District of California.

NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY CHOOSE TO DO NOTHING AT THIS POINT AND REMAIN AN ABSENT CLASS MEMBER.

The Complaint alleges China Agritech issued materially false and misleading financial statements. Particularly, the Complaint alleges that on or about February 3, 2011, analyst firm LM Research issued a report (the “Report”) alleging, among other things, that the Company’s statement of revenue and earnings for the fiscal year 2009 are materially false and misleading. The Report, citing sources, claims that China Agritech’s U.S. financial statements were materially different than the financial statements filed with Chinese authorities by a number of the Company’s subsidiaries. The report claims that the revenue reported in the Company’s SEC filings for 2009 is ten times larger than what the Chinese regulatory reports show. The LM Research report also noted a number of potential badges of fraud within the Company. The Complaint alleges that when these disclosures of potential fraud concerning China Agritech were revealed to the market, the price of China Agritech stock dropped, damaging investors.

If you wish to join the class action as serve as lead plaintiff, you must move the Court no later than April 12, 2011. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. For more information or to discuss your rights or interests regarding this class action, please contact Laurence Rosen, Esq. or Phillip Kim, Esq. of The Rosen Law Firm, toll-free, at 866-767-3653, or via e-mail at lrosen@rosenlegal.com or pkim@rosenlegal.com. You may also visit the firm’s website at http://www.rosenlegal.com.

The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation.

China Agritech, Inc. (MM) (NASDAQ:CAGC)
Historical Stock Chart
From Apr 2024 to May 2024