NEW YORK, Dec. 9, 2010 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross LLP is investigating claims on behalf of investors of RINO International, Corp. ("RINO" or the "Company") (OTCBB:RINO) during the period from February 17, 2009 – November 12, 2010 (the "Class Period"). Such investors are advised to contact Fei-Lu Qian at 888-476-6529 or flqian@pomlaw.com.
RINO is engaged in the business of designing, manufacturing, installing and servicing wastewater treatment and flue gas desulphurization equipment, primarily for use in the iron and steel industry, and anti-oxidation products and equipment for use in the manufacture of hot rolled steel plate products. The investigation concerns whether the Company failed to disclose that the Company's financial results were inflated and inconsistent with results reported to tax authorities in China.
On November 10, 2010, Muddy Waters LLC, a research firm, issued a report claiming that RINO had been engaging in a wide range of wrongful conduct, including inflating the Company's reported sales revenues, fabricating customer relationships and contracts and allowing its management to use company money to buy a luxury home in Orange County, California. In addition, Muddy Waters noted a significant discrepancy between the Company's revenue of $192.6 million reported in its fiscal 2009 Form 10-K filed with the Securities and Exchange Commission and its revenue of $11 million in its annual report for fiscal 2009 filed with the China State Administration of Industry and Commerce. In response to this news, the price of RINO's stock fell $2.34 per share, or more than 15 percent.
On November 15, 2010, RINO announced extremely disappointing third quarter 2010 results with revenues of $52.7 million and net income of $8.8 million, just over half the net income reported on the prior year. On this news, RINO's stock fell $3.46 per share or more than 31 percent.
The Pomerantz Firm, with offices in New York, Chicago, and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See .
CONTACT: Pomerantz Haudek Grossman & Gross LLP Fei-Lu Qian 888-476-6529 (ext. 241) flqian@pomlaw.com