NEW YORK, June 29, 2012 (GLOBE NEWSWIRE) -- The Rosen Law Firm, P.A. announces an update on the securities class action filed on behalf of purchasers of China Agritech common stock and call options (Nasdaq:CAGC). The Rosen Law Firm is lead counsel in the shareholder lawsuit Dean v. China Agritech, Inc., 11-CV-1331 pending in federal court in Los Angeles (the "Action").
First, the Court upheld the complaint against the defendants' motions to dismiss in the Action. The Court held that the plaintiffs' complaint successfully alleged that China Agritech had committed securities fraud by overstating its revenues for 2008 and 2009 by 1,444% and 900%, respectively. The Court also held that the complaint successfully alleged that China Agritech had committed securities fraud by failing to disclose that its largest supplier was a related party, as it was 90% owned by China Agritech's CEO. Third, the Court held that the complaint adequately alleged China Agritech's motive to inflate revenue to benefit from his ownership of this related party.
Second, the Court denied the plaintiffs' motion for class certification. As a result, your rights as a shareholder are no longer protected. You must act yourself to protect your rights. You may protect your rights by joining in the current Action as a plaintiff or by filing your own action against China Agritech. Also because the Court denied the motion for class certification, the statute of limitations is running on any claims you have against China Agritech and its officers and directors.
If you purchased China Agritech stock or options and you wish to join the Action and protect your rights, or if you have any questions regarding your rights or interests with respect to China Agritech stock, please contact Jonathan Horne, Esquire, of The Rosen Law Firm, P.A., by telephone at (212) 686-1060 or Toll Free at (866) 767-3653 or by email at firstname.lastname@example.org. For more information about The Rosen Law Firm, P.A., please visit our website at www.rosenlegal.com
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CONTACT: Laurence Rosen, Esq.
Jonathan Horne, Esq.
The Rosen Law Firm P.A.
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New York, New York 10016
Tel: (212) 686-1060
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