China Medical Technologies, Inc. CMED Securities Stock Fraud

Company:	China Medical Technologies, Inc.
Ticker Symbol:	CMED
Class Period:	Nov-26-07 to Dec-12-11
Date Filed:	Dec-28-11
Lead Plaintiff Deadline:	Feb-26-12
Court:	Southern District of New York
Allegations:

Bensalem, PA: A securities class action lawsuit has been filed on behalf of purchasers of the American Depositary Shares ("ADSs") of China Medical Technologies, Inc. ("China Medical" or the "Company") between November 26, 2007 and December 12, 2011, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934. The class action lawsuit was filed in the United States District Court for Southern District of New York.

China Medical is a medical device company that develops, manufactures and markets immunodiagnostic and molecular diagnostic products. The Complaint alleges that the Company and certain of its executive officers misrepresented or failed to disclose material adverse facts about the Company's business, operations and prospects, including that: (1) the Company acquired Beijing Bio-Ekon Biotechnology Co. Ltd. ("BBE") from a third-party seller connected to China Medical's 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) the Company overstated accounts receivable in order to inflate sales and net income; (5) the Company's reported profit margins were inflated; and (6) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.

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 Medical Technologies, Inc. CMED Securities Fraud Legal Help

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Published on Dec-29-11