BOCA RATON, Fla., Oct. 14, 2010 (GLOBE NEWSWIRE) -- Saxena White P.A. has filed a class action complaint (the "Complaint") in the U.S. District Court for the Southern District of New York on behalf of investors who purchased the securities of China-Biotics, Inc. ("China-Biotics" or the "Company") (Nasdaq:CHBT) during the period between July 10, 2008 and August 30, 2010, inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws.
The Complaint asserts violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against China-Biotics and certain of its present and former officers and directors for making material misstatements and omissions about the Company's true financial condition. According to the Complaint, during the Class Period Defendants misled investors about the quality, nature, and quantity of China-Biotics' purported retail outlets and stores.
The Complaint also alleges that the Company's fiscal 2008 financial statements filed with the SEC, including the cash, revenue and income positions set forth therein, are materially false and misleading. In fact, China-Biotics' comparable 2008 financial statements filed with Chinese authorities reported merely a fraction of the cash, revenue and income set forth in the Company's U.S. filings.
China-Biotics' false and misleading statements during the Class Period inflated the price of the Company's securities and allowed it to complete a public offering in September 2009 of 4.6 million of its shares of common stock at $15.00 per share (the "Offering"). The Complaint asserts that when the adverse information concerning the Company's operations began to enter the market, the price of China-Biotics securities dropped significantly, damaging shareholders.
You may obtain a copy of the complaint and join the class action at . If you purchased China-Biotics stock between July 10, 2008 and August 30, 2010, you may contact Joe White or Greg Stone at Saxena White P.A. to discuss your rights and interests:
If you purchased China-Biotics shares during the Class Period, including purchases made pursuant to the September 29, 2009 Offering, and wish to apply to be the lead plaintiff in this action, a motion on your behalf must be filed with the Court no later than November 16, 2010. You may contact Saxena White P.A. to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. Please note that you may also retain counsel of your choice and need not take any action at this time to be a class member.
Saxena White P.A., which has offices in Boca Raton and Boston, specializes in prosecuting securities fraud and complex class actions on behalf of institutions and individuals. Currently serving as lead counsel in numerous securities fraud class actions nationwide, the firm has recovered hundreds of millions of dollars on behalf of injured investors and is active in major litigation pending in federal and state courts throughout the United States.
CONTACT: Saxena White P.A. (561) 394-3399