BOCA RATON, FL--(Marketwire - April 1, 2011) - Saxena White P.A. announces that it has filed a class action lawsuit in the United States District Court for the Central District of California on behalf of investors who purchased China Agritech, Inc. ("China Agritech" or the "Company") (
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.
After the close of trading on March 11, 2011, NASDAQ announced that it was halting trading due to the pending release of news. On March 14, 2011, the Company issued a release announcing the resignation of its independent outside auditor, Ernst & Young Hua Ming. The Company announced that it formed a Special Committee to investigate accounting irregularities and delayed the filing of it 10-K report to the Securities and Exchange Commission. The stock has yet to re-open for trading.
You may obtain a copy of the complaint and join the class action at www.saxenawhite.com. If you purchased the common stock of China Agritech between the period of February 8, 2010 through March 11, 2011, inclusive, you may contact Joe White or Greg Stone at Saxena White P.A. to discuss your rights and interests.
If you purchased China Agritech shares during the Class Period and wish to apply to be the lead plaintiff in this action, a motion on your behalf must be filed with the Court no later than April 12, 2011. You may contact Saxena White P.A. to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. Please note that you may also retain counsel of your choice and need not take any action at this time to be a class member.
Saxena White P.A., which has offices in Boca Raton, Boston and Montana, specializes in prosecuting securities fraud and complex class actions on behalf of institutions and individuals. Currently serving as lead counsel in numerous securities fraud class actions nationwide, the firm has recovered hundreds of millions of dollars on behalf of injured investors and is active in major litigation pending in federal and state courts throughout the United States.
Contact Information:
Joseph E. White, III
jwhite@saxenawhite.com
Greg Stone
gstone@saxenawhite.com
Saxena White P.A.
2424 North Federal Highway, Suite 257
Boca Raton, FL 33431
Tel: (561) 394-3399
Fax: (561) 394-3382
www.saxenawhite.com