Hagens Berman Sobol Shapiro LLP announced today that it is investigating allegations that China Green Agriculture Inc. (NYSE: CGA) made false and misleading statements to the U.S. Securities and Exchange Commission regarding the company’s financial condition during the period between November 12, 2009 and September 1, 2010.
The investigation is based on a
by the International Financial Research & Analysis Group, articles written by
and a class-action complaint repeating those allegations.
Hagens Berman is seeking confirmation of those allegations by witnesses, and advising investors with significant losses from purchases of China Green Agriculture stock between November 12, 2009 and September 1, 2010 of their right to seek to be a lead plaintiff by December 14, 2010.
Incorporated in Nevada, China Green Agriculture develops, manufactures and distributes fertilizers. The company also develops, manufactures and distributes agricultural products, including fruits, vegetables, flowers and colored seedlings.
Allegedly, China Green Agriculture's 2010 financial statements filed with Chinese authorities materially differed from the financial results disclosed in the company's SEC filings. It is also alleged that China Green Agriculture's false and misleading statements inflated the price of the company’s stock. Hagens Berman attorneys believe that, if true, this adverse information brings into question other reporting by China Green Agriculture that has caused the company’s stock price to fall over the past year, damaging shareholders.
Key questions under investigation include whether China Green Agriculture made false and misleading statements regarding Value Added Tax and Corporate Income Tax payments to Chinese tax authorities and whether China Green Agriculture overstated the amount it paid for rural farmland in China’s Shaanxi Province.
In a Sept. 13, 2010 press release, China Green Agriculture stated it made Value Added Tax payments of about $9.4 million to the Chinese State Administration of Taxation during the two-year period ending June 2010. However, records from Chinese tax authorities show China Green Agriculture made Value Added Tax payments of less than $100,000 during that period, according to news reports.