Attorney Advertising—Bronstein Gewirtz & Grossman, LLC, today announced that it has filed a class action complaint in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of China Automotive Systems, Inc. (“China Automotive” or the “Company”) (NasdaqCM: CAAS - News) between March 25, 2010 through and including March 17, 2011, (the “Class Period”).
The Complaint charges that China Automotive and certain of its officers and directors violated federal securities laws. Specifically, the Complaint alleges that defendants failed to disclose the following: (1) the Company improperly accounted for its convertible notes issued on February 15, 2008; (2) that, as a result, the Company’s financial results were incorrectly stated during the Class Period; (3) that the Company’s financial results were not prepared in accordance with Generally Accepted Accounting Principles (“GAAP”); (4) that the Company lacked adequate internal and financial controls; and (5) that, as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
Shares of China Automotive dropped from a close of $10.23 per share on March 16, 2011 to a closing price of $8.81 per share On March 17, 2011 on news it expected to restate its financials. On March 17, 2011, the Company’s audit committee of the board of directors stated it would delay its annual financial statement and would need to restate all previously issued financial statements for the fiscal year 2009 and the first three quarters of 2010 and that these financial statements should no longer be relied upon. On March 18, 2011 the company announced that it received a letter from the NASDAQ stating that the company is no longer in compliance with NASDAQ Marketplace rules.
No Class has yet been certified in the above action. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact either Peretz Bronstein or Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email firstname.lastname@example.org. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. December 23, 2011 is the deadline for investors to seek a lead plaintiff appointment.Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of both class and individual litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate work, litigation and securities arbitration.