NEW YORK, Feb. 28, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at China Sky One Medical, Inc. ("China Sky One" or the "Company") (NASDAQ: CSKI).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) China Sky One had improperly inflated its earnings and gross margins between 2009 and 2012; and (2) the Company lacked effective internal and financial controls.
On February 15, 2012, the Company disclosed the resignation of 26 Company managers and accountants. On that same day, NASDAQ announced that it had halted trading in the stock until it received adequate "additional information requested" from the Company. The Company announced that the many resignations, combined with CEO Yanqing Liu's absence from China One Sky on health grounds, "are likely to materially adversely affect many aspects of the Company's business, including its ability to maintain customer relationships, meet production schedules, as well as maintain its internal controls." On these dismal revelations, China Sky One's shares declined $0.43 per share or 28%, to close at $1.10 on February 15, 2012.Request more information now by clicking here: www.faruqilaw.com/CSKI Take Action If you purchased China Sky One securities between April 16, 2009 and February 14, 2012 and would like to discuss your legal rights, visit www.faruqilaw.com/CSKI. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org or email@example.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding China Sky One conduct to contact the firm, including whistleblowers, former employees, shareholders and others. Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP ( www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential matter.FARUQI & FARUQI, LLP369 Lexington Avenue, 10th Floor New York, NY 10017Attn: Richard Gonnello, Esq. firstname.lastname@example.org Francis McConville, Esq. email@example.com Telephone: (877) 247-4292 or (212) 983-9330 SOURCE Faruqi & Faruqi, LLP