Newman Ferrara LLP ( www.nfllp.com) announced today that a securities class action was filed on behalf of investors in China Sky One Medical, Inc. (“China Sky one” or the “Company”) (Pink Sheets: CSKI) in the U.S. District Court for the Southern District of New York.
Investors who purchased shares of the Company’s common stock between April 16, 2009, and February 14, 2012 (the “Class Period”), and lost more than $100,000, are encouraged to contact Newman Ferrara partner Jeffrey M. Norton at (212) 619-5400 or email@example.com to discuss this action, the lead plaintiff process, or any questions concerning this notice. To serve as lead plaintiff, you must apply to be appointed by April 24, 2012. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. Lead plaintiffs are selected from among applicants claiming the largest loss from investment in the Company during the Class Period.
According to the complaint, China Sky One failed to reveal to its shareholders that the company inflated its earnings and gross margins, while failing to implement proper internal and financial controls within the company. On February 15, 2012, the Company announced that 26 middle-management level employees had resigned, and NASDAQ announced that trading of all China Sky One shares was suspended indefinitely until China Sky One released more information. China Sky One’s shares fell over 28% that same day, to close at $1.10 per share.
Whistleblowers: Persons with knowledge that may aid in the investigation of this matter are encouraged to contact the firm. Under the Dodd-Frank Wall Street Reform Bill, whistleblowers are protected from employer retaliation and may be entitled to as much as 30 percent of the recovery if the information provided leads to a successful action.Newman Ferrara maintains a multifaceted practice based in New York City with attorneys specializing in complex commercial and multi-party litigation with an emphasis on securities, ERISA, consumer fraud, products liability, civil rights and real estate. For more information, visit the firm website at www.nfllp.com.