Wolf Haldenstein Adler Freeman & Herz LLP Commences a Class Action Lawsuit on Behalf of China Agritech, Inc. Investors -- CAG...
July 05 2014 - 3:15AM
Wolf Haldenstein Adler Freeman & Herz LLP announces that a
class action lawsuit has been filed in the United States District
Court, Central District of California, on behalf of all persons who
purchased or otherwise acquired common stock of China Agritech,
Inc. ("China Agritech" or the "Company") (OTC:CAGC) between
November 12, 2009 through March 11, 2011, inclusive (the "Class
Period"), against the Company and certain of the Company's officers
and directors ("Defendants"), alleging securities fraud pursuant to
Sections 10(b) and 20(a) of the Securities Exchange Act of 1934,
and Rule 10b-5 promulgated thereunder.
The litigation is styled Resh v. China Agritech, Inc., C.A. No.
14-cv-05083. A copy of the Complaint filed in this action is
available from the Court, or can be viewed on the Wolf Haldenstein
Adler Freeman & Herz LLP website at whafh.com.
The Complaint alleges that China Agritech issued materially
false and misleading financial statements and created separate
financial records for the Securities and Exchange Commission
("SEC") and investors which drastically differed from those filed
with Chinese authorities, grossly overstating its revenues and
income in reports issued to shareholders. The truth regarding China
Agritech's financial statements slowly entered the market despite
Defendants' attempts to deny the truth. Particularly, on 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 were materially false
and misleading and referred to the Company as a "scam" with empty,
idle factory plants, no necessary licenses and "no value." The
Report claimed 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 and
that the revenue reported in the Company's SEC filings for 2009 was
ten times larger than what the Chinese regulatory reports had
shown. The Report also noted a number of potential incidents of
fraud and related party transactions within the Company. When these
disclosures of fraud concerning China Agritech were revealed to the
market, the price of China Agritech stock dropped dramatically,
damaging investors. China Agritech vigorously denied such
allegations publicly, yet the stock did not recover, and analysts
continued to downgrade CAGC.
After the close of trading on March 11, 2011, NASDAQ announced
that it was halting trading due to 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 SEC.
On October 17, 2012 the SEC issued an enforcement order revoking
the registration of CAGC's stock. Thus, CAGC's stock is no longer
publicly traded, effectively rendering it worthless.
If you purchased CAGC common stock during the Class Period, you
may request that the Court appoint you as lead plaintiff by
September 3, 2014. A lead plaintiff is a representative party that
acts on behalf of other class members in directing the litigation.
In order to be appointed lead plaintiff, the Court must determine
that the class member's claim is typical of the claims of other
class members, and that the class member will adequately represent
the class. Under certain circumstances, one or more class members
may together serve as "lead plaintiff." Your ability to share in
any recovery is not, however, affected by the decision whether or
not to serve as a lead plaintiff. You may retain Wolf Haldenstein,
or other counsel of your choice, to serve as your counsel in this
action.
Wolf Haldenstein has extensive experience in the prosecution of
securities class actions and derivative litigation in state and
federal trial and appellate courts across the country. The firm has
over 70 attorneys in various practice areas; and offices in
Chicago, New York City, and San Diego. The reputation and expertise
of this firm in shareholder and other class litigation has been
repeatedly recognized by the courts, which have appointed it to
major positions in complex securities multi-district and
consolidated litigation.
If you wish to discuss this action or have any questions, please
contact Wolf Haldenstein Adler Freeman & Herz by telephone at
(800) 575-0735, via e-mail at classmember@whafh.com, or visit our
website at www.whafh.com. All e-mail correspondence should make
reference to "China Agritech litigation."
Contact:
Wolf Haldenstein Adler Freeman & Herz LLP Gregory M.
Nespole, Esq. or Gregory Stone Email: Nespole@whafh.com,
gstone@whafh.com or classmember@whafh.com Tel: (800) 575-0735 or
(212) 545-4774
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