Faruqi & Faruqi, LLP, a national law firm concentrating on investor rights, consumer rights and enforcement of federal antitrust laws, is investigating potential wrongdoing at Yongye International, Inc. (“Yongye” or the “Company”) (NasdaqGS: YONG). Faruqi & Faruqi, LLP seeks to determine whether Yongye violated federal securities laws in connection with statements made to the Company’s shareholders.
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The investigation focuses on whether certain individuals violated federal securities laws by, among other things, failing to disclose that: (1) the Company’s ability to produce the plant product tonnage was inconsistent with the tonnage the Company had reported to the SEC and investors as shipments of sales in its financial results; (2) by including unearned revenue the Company’s reported financial statements were grossly inflated; and (3) the rate of growth of the Company’s business was inconsistent with what it had reported.
On May 9, 2011, the Company announced its financial results for its first quarter 2011, including reported revenue of $50.2 million and net income of $8.4 million. On May 11, 2011, Seeking Alpha issued an article entitled “Yongye International’s Reported Production: SEC Filings Raise Red Flags.” The article concluded that an analysis of Yongye’s SEC filings show that the Company “could not have produced, and therefore sold, the reported plant product tonnages given the [C]ompany’s stated manufacturing capacity and shipments.” After this news hit the market, Yongye’s stock fell to $4.85 per share on May 12, 2011 from $5.19 per share on May 10, 2011.Take Action If you purchased Yongye securities between August 11, 2010 and May 18, 2011, and you would like to discuss your legal rights, visit www.faruqilaw.com/YONG. You can also contact us by calling Juan Monteverde toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding Yongye’s conduct during the period in question to contact the firm, including whistleblowers, former employees, shareholders and others. About Faruqi & Faruqi, LLP Faruqi & Faruqi, LLP is a national law firm, representing investors, consumers and companies in the prosecution of claims under state corporate and consumer laws and the federal securities and antitrust laws. The firm is focused on providing exemplary legal services in complex litigation. Founded in 1995, the firm maintains its principal office in New York City, with offices in Delaware, California, Florida and Pennsylvania. The lawyers at Faruqi & Faruqi, LLP have demonstrated a clear commitment to championing the rights of shareholders and consumers nationwide.