Dyer & Berens LLP Announces Class Action on Behalf of China Medical Technologies Investors; Encourages Large Investors to Inq...
February 02 2012 - 2:00PM
Marketwired
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: Jeffrey A. Berens Dyer & Berens LLP 303 East 17th
Avenue, Suite 300 Denver, CO 80203 Tel: (888) 300-3362 x302 Email:
Email Contact
China Medical (NASDAQ:CMED)
Historical Stock Chart
From Mar 2024 to Apr 2024
China Medical (NASDAQ:CMED)
Historical Stock Chart
From Apr 2023 to Apr 2024