On November 15, 2010, before the market opened, RINO announced disappointing results for the third quarter 2010 and reduced its revenue forecast for 2010. On this news, RINO’s stock fell $3.46 per share, or more than 31 percent, to close at $7.55 per share.On November 17, 2010, RINO disclosed in a filing with the SEC that it had received a letter from its independent auditing firm which recounted a conversation between a member of the firm and RINO’s Chief Executive Officer, defendant Zou Dejun, during which Dejun revealed that RINO had, in fact, not entered into two of the six customer contracts discussed in the Muddy Waters report. Based on this revelation, RINO warned investors the following day that its previously issued financial statements for the fiscal years ending December 31, 2008 and 2009, and the interim quarters ending March 31, 2008 through September 30, 2009, should no longer be relied upon. About Lieff Cabraser Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs’ law firms in the nation. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs’ law firms in the United States to receive this honor for the last eight consecutive years. For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action lawsuits have been brought on behalf of purchasers of the securities of RINO International Corporation (“RINO” or the “Company”) (Nasdaq:RINO) between February 17, 2009 and November 12, 2010, inclusive (“Class Period”). If you purchased RINO securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than January 14, 2011. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in this action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in this action. RINO shareholders that wish to learn more about this action and how to seek appointment as lead plaintiff should visit Lieff Cabraser’s website at http://lieffcabraser.com/cases.php?CaseID=380 or contact attorney Sharon Lee toll free at (800) 541-7358. Background on RINO Securities Class Litigation The actions, pending in the United States District Court for the Central District of California, were brought against RINO and certain of its officers and directors for violations of the Securities Exchange Act of 1934. RINO, through its subsidiaries, operates as an environment protection and remediation company in the People’s Republic of China. During the Class Period, defendants allegedly issued materially false and misleading statements regarding the Company’s business prospects and financial results. Specifically, the actions allege that defendants failed to disclose that RINO’s reported financial results were materially overstated and included revenues that had not been earned. On November 10, 2010, Muddy Waters LLC, a research firm, posted a report alleging that RINO and its executives engaged in a wide range of wrongful conduct, including inflating the Company’s reported sales revenues and fabricating customer relationships and contracts. In addition, Muddy Waters noted a significant discrepancy between the fiscal 2009 revenues RINO reported to the SEC and to tax authorities in China. In response to this news, the price of RINO’s common stock fell $2.34 per share, or more than 15 percent, to close at $13.18 per share on November 11, 2010.