Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) ( http://www.rgrdlaw.com/cases/rino/) today announced that a class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of RINO International Corporation (“RINO”) (NASDAQ:RINO) common stock during the period between February 17, 2009 and November 12, 2010, inclusive (the “Class Period”). If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from November 15, 2010. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/rino/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. The complaint charges RINO and certain of its officers and directors with violations of the Securities Exchange Act of 1934. RINO, through its subsidiaries, is engaged in the business of designing, manufacturing, installing and servicing wastewater treatment and flue gas desulphurization equipment for use in China’s iron and steel industry and anti-oxidation products and equipment designed for use in the manufacture of hot rolled steel plate products. The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business practices and financial results. Specifically, defendants failed to disclose that the Company’s financial results were grossly inflated and were inconsistent with results reported by RINO to tax authorities in China. As a result of defendants’ false statements, RINO stock traded at artificially inflated prices during the Class Period, reaching a high of $34.25 per share on November 30, 2009. As a result of this inflation, RINO was able to consummate a registered direct offering of nearly 3.3 million shares of its common stock at $30.75 per share in December 2009.
On November 10, 2010, Muddy Waters, LLC (“Muddy Waters”), a small research firm, posted an unfavorable report about RINO’s business practices, claiming that the Company had been engaged in activities ranging from vastly inflating revenue to fabricating customer relationships and allowing its management to use company money to buy a luxury home in Orange County, California. Additionally, Muddy Waters reported a sizeable discrepancy between the Company’s revenue of $192.6 million reported in its fiscal 2009 Form 10-K filed with SEC and its revenue of $11 million reported in its annual report for fiscal 2009 filed with the China State Administration of Industry and Commerce. After this news, RINO’s stock collapsed $2.34 per share to close at $13.18 per share on November 11, 2010, a one-day decline of 15% on high volume.Then on November 15, 2010, before the market opened, RINO announced extremely disappointing third quarter 2010 results with revenues of $52.7 million and net income of $8.8 million, just over half the net income reported on the prior year. RINO also reduced its revenue forecast for 2010 from $221-$229 million to $203-$211 million. On this news, RINO’s stock collapsed to $7.55 per share on volume of 7.7 million shares, a decline of 77% from its Class Period high. According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) RINO’s financial results reported to the SEC and investors were inconsistent with amounts reported to Chinese tax authorities; and (b) RINO’s reported financial statements were grossly inflated by including revenue it had not earned. Plaintiff seeks to recover damages on behalf of all purchasers of RINO common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller, a 180-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Robbins Geller Web site ( http://www.rgrdlaw.com) has more information about the firm.