This Day On The Street
Continue to site
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

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. 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, or at:

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs