American Oriental Bioengineering, Inc.
Class Period: Nov 9, 2009 to Jun 15, 2012
Lead Plaintiff Deadline: Sep 8, 2012 + Deadline passed
Summary of Case:
A securities class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of all persons or entities that purchased the common stock of American Oriental Bioengineering, Inc. ("AOB" or the "Company") AOBI between November 9, 2009 and June 15, 2012, inclusive (the "Class Period"), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the "Complaint").
AOB, a Nevada corporation headquartered in Beijing, China, is a vertically integrated pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of pharmaceutical and healthcare products. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company's business, operations and prospects. Specifically, the Complaint alleges that the Defendants misled investors about issues involving the Company's internal control weaknesses in connection with its financial reporting. As a result of defendants' false and misleading statements, the Company's stock traded at artificially inflated prices during the Class Period.
According to the Complaint, AOB's 10-Qs and 10-Ks filed during the Class Period asserted that the Company's disclosure controls and internal control over financial reporting were effective. However, starting on March 15, 2012, the truth began to prove otherwise. On that date, trading in the Company's stock was halted. Further, on March 16, 2012, the Company filed an 8-K with the SEC announcing that its auditor Ernst & Young Hua Ming ("E&Y") had informed the Company that during the course of E&Y's audit of the Company for fiscal 2011 that it found some inconsistencies.
On May 29, 2012, the Company's stock began trading over the counter following the delisting of AOB's stock from the NYSE due to its failure to timely file its annual report. The Company's stock fell $0.94, closing at $0.58 per share on May 29, 2012. The Company then announced on June 15, 2012 that its prior financial statements issued during the Class Period should no longer be relied upon and had to be restated. In the same release, the Company announced that E&Y had pulled its audit opinions on AOB's financial statements and internal controls for years ended 2009 and 2010 - E&Y stated that it could no longer rely on AOB's management's representations. E&Y was subsequently dismissed as the Company's auditor.
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.
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.