Saxena White P.A. Files a Securities Fraud Class Action Against China Agritech, Inc.
April 01 2011 - 11:55PM
Marketwired
Saxena White P.A. announces that it has filed a class action
lawsuit in the United States District Court for the Central
District of California on behalf of investors who purchased China
Agritech, Inc. ("China Agritech" or the "Company") (NASDAQ: CAGC)
common stock between the period of February 8, 2010 through March
11, 2011, inclusive (the "Class Period").
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.
After the close of trading on March 11, 2011, NASDAQ announced
that it was halting trading due to the pending release of news. On
March 14, 2011, the Company issued a release announcing the
resignation of its independent outside auditor, Ernst & Young
Hua Ming. The Company announced that it formed a Special Committee
to investigate accounting irregularities and delayed the filing of
it 10-K report to the Securities and Exchange Commission. The stock
has yet to re-open for trading.
You may obtain a copy of the complaint and join the class action
at www.saxenawhite.com. If you purchased the common stock of China
Agritech between the period of February 8, 2010 through March 11,
2011, inclusive, you may contact Joe White or Greg Stone at Saxena
White P.A. to discuss your rights and interests.
If you purchased China Agritech shares during the Class Period
and wish to apply to be the lead plaintiff in this action, a motion
on your behalf must be filed with the Court no later than April 12,
2011. You may contact Saxena White P.A. to discuss your rights
regarding the appointment of lead plaintiff and your interest in
the class action. Please note that you may also retain counsel of
your choice and need not take any action at this time to be a class
member.
Saxena White P.A., which has offices in Boca Raton, Boston and
Montana, specializes in prosecuting securities fraud and complex
class actions on behalf of institutions and individuals. Currently
serving as lead counsel in numerous securities fraud class actions
nationwide, the firm has recovered hundreds of millions of dollars
on behalf of injured investors and is active in major litigation
pending in federal and state courts throughout the United
States.
Joseph E. White, III jwhite@saxenawhite.com Greg Stone
gstone@saxenawhite.com Saxena White P.A. 2424 North Federal
Highway, Suite 257 Boca Raton, FL 33431 Tel: (561) 394-3399 Fax:
(561) 394-3382 www.saxenawhite.com
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