CASES
Yongye International, Inc.
Class Period: Aug 11, 2010 to May 11, 2011
Lead Plaintiff Deadline: Jul 25, 2011 + Deadline passed
Summary of Case:
A securities class action has been filed against Yongye International, Inc. ("Yongye" or the "Company") on behalf of all persons who purchased or otherwise acquired the common stock of Yongye from August 11, 2010 to May 11, 2011. This case has been filed in the USDC - New York (Southern).
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business practices and financial results. Specifically, defendants failed to disclose that the Company's financial results were inflated and were inconsistent with Yongye's production capabilities. As a result of defendants' false statements, Yongye stock traded at artificially inflated prices during the Class Period, reaching a high of $9.09 per share on November 8, 2010.
On May 9, 2011, Yongye issued a press release announcing its first quarter 2011 financial results. The Company reported revenue of $50.2 million and net income of $8.4 million, or $0.16 diluted earnings per share. Then on May 11, 2011, Seeking Alpha issued an article entitled "Yongye International's Reported Production: SEC Filings Raise Red Flags." The article stated in part "that the company and its joint-venture partner could not have produced, and therefore sold, the reported plant product tonnages given the company's stated manufacturing capacity and shipments." On this news, Yongye's stock fell to $4.85 per share on May 12, 2011, from $5.19 per share on May 10, 2011.
According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) Yongye's financial results reported to the SEC and investors were inconsistent with the Company's ability to produce the tonnage reported as shipments of sales; (b) Yongye's reported financial statements were grossly inflated by including revenue it had not earned; and (c) Yongye's business was not growing at the rate represented by defendants.
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.