This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Berman DeValerio Files Securities Class Action Against RINO International Corporation

The law firm of Berman DeValerio filed a securities fraud lawsuit today on behalf of investors who purchased or otherwise acquired the common stock of RINO International Corporation (“RINO” or the “Company”) (formerly NASDAQ:RINO, currently OTCBB:RINO) from July 13, 2009 to November 12, 2010, inclusive (“Class Period”). Berman DeValerio ( www.bermandevalerio.com) filed the class action complaint against RINO and certain of the Company’s directors and officers in the United States District Court for the Central District of California (the “Court”). The case is captioned as Zhang v. RINO International Corp. et al., No. SACV-10-01887-CJC (RNBx).

If you wish to serve as lead plaintiff, you must file a motion with the Court no later than January 14, 2011.

The complaint alleges RINO and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (“Exchange Act”) and Securities and Exchange Commission (“SEC”) Rule 10b-5. Specifically, the complaint asserts that RINO, a Chinese manufacturer of environmental protection equipment for China’s iron and steel industry, fraudulently reported inflated revenues to the SEC and the investing public that were, for 2009, over 90 percent higher than the revenues reported to Chinese regulators. In particular, the complaint alleges that RINO misled investors by reporting revenue from at least two customer contracts that did not exist.

On November 10, 2010, the research firm Muddy Waters LLC issued a report that called into question the Company’s customer relationships, accounting and financial results. The report also highlighted that on the same day that RINO closed a $100 million financing transaction, certain officers and directors borrowed $3.2 million from the Company to purchase a luxury home in Orange County, California. Upon release of this report, RINO’s stock price quickly fell, declining over 15% to $13.18 on November 10.

Over the next several days, RINO reported very disappointing third-quarter earnings, cancelled a planned earnings call with investors and failed to respond to the allegations in the Muddy Waters report. On November 17, 2010, the NASDAQ halted trading in RINO, by which time the stock price had fallen to $6.07, a decrease of 61% over less than six trading days.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,683.58 -46.53 -0.26%
S&P 500 2,068.76 -8.02 -0.39%
NASDAQ 4,991.94 -17.2740 -0.34%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs