Rigrodsky & Long, P.A. Files Securities Fraud Class Action Lawsuit Against China Agritech, Inc.
Seventh graph, first sentence of release should read: If you wish to serve as lead plaintiff, you must move the Court no later than December 7, 2012. (sted If you wish to serve as lead plaintiff, you must move the Court no later than December 4, 2012.)
The corrected release reads:
RIGRODSKY & LONG, P.A. FILES SECURITIES FRAUD CLASS ACTION LAWSUIT AGAINST CHINA AGRITECH, INC.
Rigrodsky & Long, P.A. announces that it has filed a class action lawsuit in the United States District Court for the District of Delaware on behalf of all persons or entities that purchased the securities of China Agritech, Inc. (“China Agritech” or the “Company”) (OTC Pink: CAGC) between November 12, 2009 and March 11, 2011 (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against certain of the Company’s officers (the “Complaint”). The case is entitled Smyth v. Chang, Case No. 12-cv-1262 (D. Del.).If you purchased shares of China Agritech during the Class Period, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Peter Allocco of Rigrodsky & Long, P.A., 825 East Gate Boulevard, Suite 300, Garden City, NY at (888) 969-4242, by e-mail to email@example.com, or at: http://www.rigrodskylong.com/news/china-agritech-inc-cagc. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s business operations, financial condition and prospects. Specifically, the Complaint alleges that the Company overstated its revenues and omitted to disclose significant related-party transactions. On November 12, 2009, the Company filed a Form 10-Q with the U.S. Securities and Exchange Commission (“SEC”) reporting its third quarter results. The 10-Q was false because it materially misstated the Company’s revenue and net income for the quarter. The Company’s Form 10-K, filed with the SEC on April 1, 2010, contained similar misstatements about the Company’s revenue and net income, in addition to concealing related-party transactions involving China Agritech’s Chief Executive Officer (“CEO”), Yu Chang (“Chang”). The 10-K indicated that the Company purchased 15% and 12% of its raw materials from Shenzhen Hongchou Technology Company Ltd. (“Shenzehn Hongchou”) in fiscal 2009 and 2008, respectively. However, it failed to disclose that during that time, Defendant Chang owned 90% of Shenzhen Hongchou. Generally Accepted Accounting Principles, State of Financial Accounting Standards and SEC regulations all require the Company to disclose all material related-party transactions, which it failed to do.
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