Rigrodsky & Long, P.A. Files Class Action Lawsuit Against RINO International Corporation
The law firm of Rigrodsky & Long, P.A. has filed a class action lawsuit in the United States District Court for the Central District of California on behalf of all persons or entities who purchased the common stock of RINO International Corporation (“RINO” or the “Company”) (Pink Sheets: RINO.PK) between May 15, 2008 through November 19, 2010, inclusive (the “Class Period”), seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”) (the “Complaint”). The case is styled as Chau v. RINO International Corporation, et al., No. CV10-09517-RGK (PJWx) (C.D. Cal.).
Click here to learn more and view a copy of the Complaint: http://www.rigrodskylong.com/news/RINOInternationalCorp-RINO.
The Complaint names RINO and certain of the Company’s current and former executive officers and directors as defendants. The Complaint alleges that during the Class Period, defendants made materially false and misleading statements, and/or omitted material facts. Specifically, throughout the Class Period, the Company represented that it was experiencing steady financial growth due, in large part, to the success of its Flue Gas Desulphurization equipment (“FGD”) sales. However, unbeknownst to the market, while RINO was reporting increasingly favorable financial results driven by its FGD business, certain of its reported contracts were, in fact, non-existent and, therefore, the Company’s publicly reported financial statements materially inaccurate.
The truth began to emerge on November 10, 2010 when Muddy Waters, LLC (“MW”) issued a research report about, and a “Strong Sell” recommendation for, the Company. In that report, MW states, among other things, that RINO had fabricated the existence of at least five of the nine customer contracts for FGD equipment reported in the Company’s public filings. Moreover, MW reported that filings with the People’s Republic of China’s State Administration of Industry and Commerce (“SAIC”) showed that the Company’s 2009 consolidated revenue was only $11.1 million, as opposed to the $192.6 million reported in the Company’s SEC filings.
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