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China Agritech CAGC Securities Stock Fraud

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Company: China Agritech
Ticker Symbol: CAGC
Class Period: Feb-8-10 to Feb-3-11
Date Filed: Feb-11-11
Lead Plaintiff Deadline: Apr-12-11
Court: Central District of California
Allegations:
New York, NY: A class action lawsuit has been on behalf of investors who purchased the common stock of China Agritech, Inc. ("China Agritech" or the "Company") during the period from February 8, 2010 through February 3, 2011 (the "Class Period"). The lawsuit seeks to recover damages for investors from violations of the federal securities laws. No class has yet been certified.

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.

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.

China Agritech CAGC Securities Fraud Legal Help

If you have suffered from financial losses, you may qualify for damages or remedies that may be awarded in a possible China Agritech securities class action lawsuit. Please fill in our form on the right to submit your complaint for a free evaluation.

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