Yuhe International, Inc.
Class Period: Dec 29, 2009 to Jun 23, 2011
Lead Plaintiff Deadline: Aug 23, 2011 + Deadline passed
Summary of Case:
A securities class action has been filed against Yuhe International, Inc. ("Yuhe" or the "Company") on behalf of all persons who purchased securities of Yuhe between December 31, 2009 to June 23, 2011, inclusive (the "Class Period"). This case has been filed in the Court USDC - Florida (Southern).
The Complaint alleges that during the Class Period, Defendants issued false and misleading statements and omitted to state material facts that rendered their affirmative statements misleading as they related to the Company's financial performance, business prospects, and true financial condition.
The Complaint alleges that (a) Yuhe's financial results as reported to the SEC for the fiscal years ended 2009 and 2010 were materially false and misleading; (b) Yuhe lied to investors about its purported acquisition of 13 breeder farms from Weifangshi Dajiang Qiye Group Co. Ltd. ("Dajiang"); and (c) Yuhe's business was not growing at the rate represented by Defendants. The Complaint alleges that on or about June 16, 2011 information from an analyst entered the market, quoting Dajiang's chairman, that Yuhe did not acquire Dajiang's farms, as Yuhe had represented in its SEC filings and other public statements. This announcement shocked the market and Yuhe's stock lost more than half of its value. On June 17, 2011, trading in the Company's stock was halted. On June 23, 2011, the Company announced its auditor had resigned because of Yuhe "management's misrepresentation and failure to disclose material facts surrounding certain acquisition transactions and off balance sheet related party transactions." Moreover, the auditor stated that its audited financial statements of Yuhe for the year ended December 31, 2010 should no longer be relied upon and that the auditor no longer will be associated with the financial statements.
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.