CASES
China Automotive Systems, Inc.
Class Period: Mar 25, 2010 to Mar 17, 2011
Lead Plaintiff Deadline: Dec 24, 2011 + Deadline passed
Summary of Case:
A securities class action has been filed against China Automotive Systems, Inc. ("China Automotive" or the "Company") on behalf of all who purchased or otherwise acquired China Automotive securities between March 25, 2010 to March 17, 2011. This case has been filed in the USDC - New York (Southern District).
The complaint aleges that throughout the class period Defendants made false and misleading statements,as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose: (1) the Company improperly accounted for its convertible notes issued on February 15, 2008; (2) that, as a result, the Company's financial results were incorrectly stated during the Class Period; (3) that the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (4) that the Company lacked adequate internal and financial controls; and (5) that, as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On March 17, 2011, CAAS disclosed that it would delay filing its 10-K for the fiscal year ended December 31, 2010 and that the Company had determined that its financial statements for the year ended December 31, 2009 and for the first three quarters of 2010 should no longer be relied upon and should be restated as a result of errors in accounting related to the Company's convertible notes issued on February 15, 2008. The expected adjustment for the change in the fair value of the derivatives for the year ended December 31, 2009 is a loss of $43 million, and a gain for the year ended December 31, 2010 of $19 million. Subsequently, on March 18, 2011, the Company announced that due to its delay in filing, the NASDAQ notified the Company of its failure to comply with NASDAQ's continued listing requirements, which requires that the Company files quarterly reports with the SEC in a timely fashion. CAAS has until May 16 to inform NASDAQ of its plan to regain compliance.
As a result of Defendants' wrongful acts and omissions, and the precipitous declines in the market value of the Company's securities, Plaintiff and other Class members have suffered significant losses and damages.
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.