SOURCE: Izard Nobel LLP

March 23, 2010 17:59 ET

Izard Nobel LLP Announces Class Action Lawsuit Against Fuqi International, Inc.

WEST HARTFORD, CT--(Marketwire - March 23, 2010) -  The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of Fuqi International, Inc. ("Fuqi" or the "Company") (NASDAQ: FUQI) between May 15, 2009 and March 17, 2010, inclusive (the "Class Period").

The Complaint charges that Fuqi and certain of its officers and executives violated federal securities laws. Specifically, the Complaint alleges that defendants failed to disclose: (i) that the Company's financial results were artificially inflated due to Fuqi's material misstatement of its inventory and cost of sales; (ii) that Fuqi's internal and disclosure controls with respect to its inventory and cost of sales were materially deficient; and (iii) that, as a result of the foregoing, Fuqi's financial statements were not fairly presented in conformity with U.S. Generally Accepted Accounting Principles and were materially false and misleading.

On March 16, 2010, Fuqi issued a press release announcing its preliminary financial results for the fourth quarter ended December 31, 2009, and a delay in the filing of its Annual Report on Form 10-K. On this news, on the next trading day, shares of the Company's stock fell more than 37%, to close at $11.90 per share.

If you are a member of the class, you may, no later than May 18, 2010, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/fuqi/, or contact Izard Nobel LLP toll-free: (800) 797-5499, or by e-mail: firm@izardnobel.com. For more information about class action cases in general, please visit our website: www.izardnobel.com.

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