This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Rigrodsky & Long, P.A. Files Securities Fraud Class Action Lawsuit Against China Agritech, Inc.

Stocks in this article: CAGC

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 info@rigrodskylong.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.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,614.81 +215.14 1.31%
S&P 500 1,941.28 +37.27 1.96%
NASDAQ 4,419.4780 +103.4040 2.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs