Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased the common stock of China Sky One Medical, Inc. (“China Sky One” or the “Company”) (NasdaqGM: CSKI) between April 16, 2009 and February 14, 2012 (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 (the “Complaint”).
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Scott J. Farrell, Esquire of Rigrodsky & Long, P.A., 825 East Gate Boulevard, Suite 300, Garden City, NY at (888) 969-4242, by e-mail to firstname.lastname@example.org, or at: http://www.rigrodskylong.com/investigations/china-sky-one-medical-inc-cski
China Sky One manufactures pharmaceutical and medicinal products, as well as diagnostic kits. The Complaint names the Company and certain of its officers and/or directors as defendants, and alleges that during the Class Period, defendants made materially false and misleading statements concerning the Company’s business and its prospects. Specifically, the Complaint alleges defendants misrepresented and/or failed to disclose that: China Sky One’s earnings were inflated; the Company’s gross margins were inflated; and the Company lacked adequate internal and financial controls.
The Complaint alleges that during the Class Period, doubt had been expressed about the accuracy of the Company’s various publicly reported financial results and metrics, including earnings and gross margins. Specifically, on May 19, 2011, China Economic Review published an article warning that China Sky One’s impressive financial results were suspect, based on a comparison of the Company and its close competitors. On February 15, 2012, the Company announced that its Chief Executive Officer was being treated for a life threatening illness and was taking a medical leave of absence, and that 26 middle-management level employees, including nine from the accounting department, had resigned. As a result of the foregoing disclosures, the price of China Sky One common stock fell approximately 28%, from $1.53 per share on February 14, 2012 to close at $1.10 per share on February 15, 2012.