CASES
Fuqi International, Inc.
Class Period: May 15, 2009 to Mar 17, 2010
Lead Plaintiff Deadline: May 18, 2010 + Deadline passed
Summary of Case:
A securities class action has been filed against Fuqi International, Inc. (FUQI) ("Fuqi" or the "Company") on behalf of all securities purchasers from May 15, 2009 through March 17, 2010, inclusive ("Class Period"), in the United States District Court for the Southern District of New York.
The complaint alleges that throughout the Class Period, defendants failed to disclose material adverse facts about Fuqi's true financial condition, business and prospects. Specifically, defendants failed to disclose: (i) that the Company's financial results were artificially inflated due to Fuqi's material misstatement of its inventory and cost of sales; (ii) that the Company's internal and disclosure controls with respect to its inventory and cost of sales were materially deficient; (iii) as a result of the foregoing, Fuqi's financial statements were not fairly presented in conformity with U.S. Generally Accepted Accounting Principles and were materially false and misleading; and (iv) based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company, its prospects and growth.
On March 16, 2010, Fuqi issued a press release announcing its preliminary financial results for the fourth quarter ended December 31, 2009 and the delay in filing its Annual Report on Form 10-K. In response to these statements, on the next trading day, shares of the Company's stock fell more than 37%, to close at $11.90 per share, on approximately 20 times its normal trading volume.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.