San Diego, CA -- (SBWire) -- 06/06/2012 --An investor in shares of China-Biotics Inc. (PINK:CHBT) filed a lawsuit in the U.S. District Court for the Southern District of New York against China-Biotics, Inc over alleged violations of Federal Securities Laws in connection with certain financial statements.
If you purchased China-Biotics, Inc. (Pink Sheets:CHBT) between February 9, 2011 and July 1, 2011, you have certain options and there are short and strict deadlines running. Deadline: July 25, 2012. China-Biotics Inc. (PINK:CHBT) investors should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges that between February 9, 2011 and July 1, 2011, Defendants allegedly knew, or recklessly disregarded, that China-Biotics, Inc fabricated a false sales contract, a false bank website; and a false bank advice in furtherance of its scheme to fraudulently create the appearance of having achieved a 50% growth in 2011 revenue.
China-Biotics Inc. (PINK:CHBT) reported that its Total Revenue rose from $30.61million for the 12months period ending on March 31, 2007 to $81.36million for the 12months period ending on March 31, 2010.
However its Net Income fell from $19.87million for the 12months period ending on March 31, 2009 to $15.65million for the 12months period ending on March 31, 2010.
The plaintiff says that as a result of the dissemination of the materially allegedly false and misleading information and failure to disclose material facts, the market price of China-Biotics common stock was artificially inflated between February 9, 2011 and July 1, 2011.
Shares of China-Biotics Inc. (PINK:CHBT) traded in August 2011 at $3.51 but lost significantly value and traded in September 2011 as low as $0.48 per share.
Recently China-Biotics Inc. (PINK:CHBT) closed as low as $0.75 per share.
Those who purchased China-Biotics Inc. (PINK:CHBT) between February 9, 2011 and July 1, 2011, you have certain options and there are short and strict deadlines running. Deadline: July 25, 2012. China-Biotics Inc. (PINK:CHBT) investors should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
Contact:
Shareholders Foundation, Inc.
Joelle Day
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com
China-Biotics Inc. (PINK:CHBT) Investor Files New Lawsuit over Alleged Misleading Statements
A lawsuit was filed for certain investors in China-Biotics Inc. (PINK:CHBT) over alleged securities laws violations. Deadline: July 25, 2012. China-Biotics Inc. investors should contact the Shareholders Foundation.