The Rosen Law Firm, P.A. today announced that it has filed a class action lawsuit on behalf of investors who purchased the common stock of China Agritech, Inc. (“China Agritech” or the “Company”) (NASDAQ: CAGC) during the period from February 8, 2010 through February 3, 2011 (the “Class Period”). The lawsuit seeks to recover damages for investors from violations of the federal securities laws. To join the China Agritech class action, visit the Rosen Law Firm’s website at http://www.rosenlegal.com, or call Laurence Rosen, Esq. or Phillip Kim, Esq., toll-free, at 866-767-3653; you may also email firstname.lastname@example.org or email@example.com information on the class action. The case is pending in the U.S. District Court for the Central District of California. NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY CHOOSE TO DO NOTHING AT THIS POINT AND REMAIN AN ABSENT CLASS MEMBER. The Complaint alleges China Agritech issued materially false and misleading financial statements. Particularly, the Complaint alleges that on or about February 3, 2011, analyst firm LM Research issued a report (the “Report”) alleging, among other things, that the Company’s statement of revenue and earnings for the fiscal year 2009 are materially false and misleading. The Report, citing sources, claims that China Agritech’s U.S. financial statements were materially different than the financial statements filed with Chinese authorities by a number of the Company’s subsidiaries. The report claims that the revenue reported in the Company’s SEC filings for 2009 is ten times larger than what the Chinese regulatory reports show. The LM Research report also noted a number of potential badges of fraud within the Company. The Complaint alleges that when these disclosures of potential fraud concerning China Agritech were revealed to the market, the price of China Agritech stock dropped, damaging investors.
Shares of China Agritech (Nasdaq:CAGC) have taken a tremendous swing upward. The stock is trading at $1.98 as of 10:14 a.m. ET, 21.5% above Wednesday's closing price of $1.63. Volume is at 3,600, zero times the daily average of 72,700.
Shares of China Agritech (Nasdaq:CAGC) have taken a tremendous swing upward. The stock is trading at $1.98 as of 10:52 a.m. ET, 22.2% above Wednesday's closing price of $1.62. Volume is at 8,038, 0.1 times the daily average of 72,700.
Shares of China Agritech (Nasdaq:CAGC) have taken a tremendous swing upward. The stock is trading at $2 as of 3:56 p.m. ET, 25% above Friday's closing price of $1.60. Volume is at 136,041, 1.9 times the daily average of 72,700.