SOURCE: Dyer & Berens LLP

Dyer & Berens LLP

February 02, 2012 14:00 ET

Dyer & Berens LLP Announces Class Action on Behalf of China Medical Technologies Investors; Encourages Large Investors to Inquire About the Upcoming Lead Plaintiff Deadline (CMED)

DENVER, CO--(Marketwire - Feb 2, 2012) - Dyer & Berens LLP (www.DyerBerens.com) today announced that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of China Medical Technologies, Inc. (NASDAQ: CMED) American Depository Shares between November 26, 2007 and December 12, 2011, inclusive (the "Class Period").

What actions may I take at this time? If you purchased shares during the Class Period and wish to serve as a lead plaintiff, you must request appointment by the court no later than February 17, 2012. A "lead plaintiff" works with counsel to direct the litigation and participates in important decisions, including the amount of compensation to accept in settlement of the class action. Members of the putative class may move the court to serve as lead plaintiffs through counsel of their choice, or may choose to do nothing and remain absent class members.

If you would like to discuss this action, the lead plaintiff process, or have any questions concerning this notice, please contact Jeffrey A. Berens, Esq. at (888) 300-3362 x302 or via email at jeff@dyerberens.com.

What are the allegations in the complaint? The complaint contains allegations that, during the Class Period, defendants issued materially false and misleading statements regarding the company's business. Specifically, the complaint alleges that officials at China Medical withheld material adverse facts from investors that, among other things: (1) the company acquired Beijing Bio-Ekon Biotechnology Co., Ltd. ("BBE") from a third-party seller connected to its chairman, Wu Xiaodong; (2) the company overpaid by approximately $20 million to acquire BBE; (3) the BBE acquisition involved the use of fraudulent shell companies; (4) China Medical overstated accounts receivable in order to inflate sales and net income; and (5) the company's reported profit margins were inflated. On December 6, 2011, a published analyst report claimed that China Medical's CEO was embezzling money through sham acquisitions, the company's reported profits and net income were inflated as they were inconsistent with comparable competitors, and the majority of the company's account receivables were in excess of 120 days, indicating that its reported revenues were inflated. Based upon the foregoing, the complaint charges the company and certain of its officers with violations of the Securities Exchange Act of 1934.

About Dyer & Berens LLP. Dyer & Berens LLP and its attorneys represent investors in securities class action lawsuits, and over the years have recovered hundreds of millions of dollars for their clients. For more information, please go to: www.DyerBerens.com.

Contact Information

  • Contact:
    Jeffrey A. Berens
    Dyer & Berens LLP
    303 East 17th Avenue, Suite 300
    Denver, CO 80203
    Tel: (888) 300-3362 x302
    Email: Email Contact