LAWSUITS NEWS & LEGAL INFORMATION
American Oriental Bioengineering, Inc AOBI Securities Lawsuit
|Company:||American Oriental Bioengineering, Inc|
|Class Period:||Nov-9-09 to Jul-15-12|
|Lead Plaintiff Deadline:||Sep-3-12|
|Court:||Central District of California|
AOBI is a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of pharmaceutical and healthcare products. The Complaint alleges that, throughout the Class Period, defendants made false and/or misleading statements, as well as failed to disclose that: (1) certain of the Company's capsule products maintained chrome levels far exceeding humanly tolerable limits; (2) the Company's financial statements contained material inconsistencies; (3) the Company's internal controls over financial reporting were deficient; and (4) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.
On March 16, 2012, the Company's independent registered public accounting firm, Ernst & Young Hua Ming ("E&Y") informed the Company's Audit Committee of certain inconsistencies in the Company's financial statements during its audit for the fiscal year 2011.
On April 19, 2012, the Company disclosed that four of its five manufacturing subsidiaries were undergoing "onsite short notice inspections" by the Chinese State Food and Drug Administration after discovering thirteen types of capsule products with chrome levels far exceeding humanly tolerable limits.
After being delisted by the New York Stock Exchange on May 25, 2012, the Company's common stock plummeted $0.94 or nearly 62%, to close at $0.58 when it resumed trading over the counter on May 29, 2012.
On June 15, 2012, the Company disclosed that it had dismissed E&Y as its independent registered public accounting firm. In addition, the Company announced that E&Y had withdrawn its audit reports for the Company's financial statements for the years ended 2009 and 2010, after E&Y concluded that it could no longer rely on management's representations in connection with (a) its audits of the financial statements for years ended December 2009 and 2010; (b) its audit of the effectiveness of the Company's internal control over financial reporting as of December 31, 2009 and 2010; and (c) its review of the Company's unaudited interim financial statements for the quarters from September 30, 2009 through September 30, 2011.
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.
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Published on Jul-6-12
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