China-Biotics Inc (NASDAQ: CHBT) Investor Securities Class Action Lawsuit 09/17/2010

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Company Name(s): 
China-Biotics
Case Name: 
China-Biotics Shareholder Class Action Lawsuit 09/17/2010
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NASDAQ: CHBT
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
09/17/2010
Class Period Begin: 
07/10/2008
Class Period End: 
07/01/2011
Court of Filing: 
U.S. District Court for the Central District of California
Deadline To File for Lead: 
11/16/2010
Date Settled: 
05/08/2015
Settlement Amount: 
$1,400,000
Deadline to Participate in Settlement: 
08/27/2015
Summary: 

September 10, 2015 - The court held a final settlement hearing and approved the settlement, the plan of allocation, the motion for attorneys’ fees and expenses, and dismissing the action with prejudice.

May 8, 2015 - The court preliminarily approved the settlement.

March 31, 2015 - Parties filed a stipulation of settlement.

November 20, 2013 - Parties filed a stipulation dismissing two particular defendants with prejudice.

October 18, 2012 - Cases were consolidated.

May 25, 2012 - An additional investor filed a complaint in the U.S. District Court for the Southern District of New York against China-Biotics Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between July 10, 2008 and August 30, 2010.

February 27, 2012 - The defendants filed motions to dismiss.

January 9, 2012 - The lead plaintiff filed a second amended complaint.

August 18, 2011 - The defendants filed motions to dismiss.

April 25, 2011 - The lead plaintiff filed an amended complaint on behalf of investors who purchased China-Biotics Inc (NASDAQ: CHBT) common shares between July 10, 2008 and August 27, 2010. The lead plaintiff alleges that the defendants violated the Securities Act of 1933 and the Securities Exchange Act of 1934 by issuing false and misleading statements between July 10, 2008 and August 27, 2010.

February 10, 2011 - The lead plaintiff and lead counsel were appointed.

December 16, 2010 - The plaintiff in the originally filed complaint filed a notice of voluntary dismissal.

November 16, 2010 - Lead plaintiff motions were filed.

October 13, 2010 - Another investor filed a complaint in the U.S. District Court for the Southern District of New York against China-Biotics Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between

September 17, 2010 - An investor in shares of China-Biotics Inc (NASDAQ: CHBT) filed a lawsuit in the U.S. District Court for the Central District of California against China-Biotics Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between July 10, 2008 and August 30, 2010.

According to the complaint the plaintiff alleges that China-Biotics and certain of its present and former officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by making between July 10, 2008 and August 30, 2010 material misstatements and omissions about China-Biotics true financial condition. The plaintiff alleges that between July 10, 2008 and August 30, 2010, defendants misled investors about the quality, nature, and quantity of China-Biotics' purported retail outlets and stores.

China-Biotics Inc more than doubled its total revenue over the past four years. While China-Biotics Inc reported to the SEC on March 31, 2007 for the past 12 months Total Revenue of $30.61 million, China-Biotics Inc announced on March 31, 2010 for the past 12 months Total revenue of $81.36 million. Its Net Income increased over the same period from $10.90 million to $15.65 million. The complaint also alleges that China-Biotics Inc's fiscal 2008 financial statements filed with the U.S. Securities and Exchanges Commission (“SEC”) are materially false because China-Biotics' fiscal 2008 financial statements filed with Chinese authorities reported merely a fraction of the cash, revenue and income set forth in China-Biotics Inc's 2008 financial statements with the SEC. The Complaint asserts that when this adverse information began to enter the market, the price of China-Biotics Inc securities dropped, damaging investors. Shares of China-Biotics Inc (NASDAQ: CHBT) traded recently at $10.08 per share, down from its 52 week High of $19.74 per share.

China-Biotics Inc is engaged in the research, development, production, marketing, and distribution of probiotics products, which are products that contain live microbial food supplements.