China Organic Agriculture, Inc. Hit With Investor Class Action Lawsuit

If you purchased shares of China Organic Agriculture, Inc. (Public, PINK: CNOA) between November 12, 2008 through March 24, 2010, you have certain options and there are strict and short deadlines running. Deadline: Jan. 27, 2012. CNOA stockholders should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
China Organic Agriculture
Case Name: 
China Organic Agriculture Shareholder Class Action 11/29/2011
Case Status: 
Lawsuit Filed
Affected Securities
OTC: CNOA
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
11/29/2011
Class Period Begin: 
11/12/2008
Class Period End: 
03/24/2010
Court of Filing: 
U. S. District Court for the Southern District of New York
Deadline To File for Lead: 
01/27/2012
Summary: 

San Diego, Nov. 29, 2011 (Shareholders Foundation) -- An investor in shares of China Organic Agriculture, Inc. (PINK: CNOA) filed a lawsuit in United States District Court for the Southern District of New York against China Organic Agriculture, Inc. over alleged Violations of Federal Securities Laws.

According to the complaint the plaintiff alleges on behalf of purchasers of CNOA stock between November 12, 2008 through March 24, 2010, that China Organic Agriculture, Inc. and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing between November 12, 2008 through March 24, 2010 materially false and misleading statements.

While China Organic Agriculture, Inc. reported that its annual Revenue rose from $112.70million for 2008 to $143.86million for 2009, its Net Income fell from $17.46million for ’08 to $10.88million in 2009.

Specifically the plaintiff alleges that defendants allegedly knew, or recklessly disregarded, that despite China Organic Agriculture's public representation that the sale of Jilin Songyuan City ErMaPao Green Rice Limited had been completed in September 2008 and that China Organic Agriculture, Inc had received no payments from the purchaser Bothven Investments Limited at the time the sale was announced.
The plaintiff claims that it was not until March 18, 2009 that Bothven Investments Limited signed the extension payment agreement with China Organic Agriculture, Inc pursuant to which Bothven Investments Limited agreed to pay the purchase price of $8,700,000 in 3 installments (30% in July 2009, 30% in September 2009 and 40% in October 2009).
In addition, so the lawsuit, Defendants, who had reported the sale of Jilin Songyuan City ErMaPao Green Rice Limited, allegedly knew or recklessly disregarded that China Organic Agriculture, Inc reported results from Jilin Songyuan City ErMaPao Green Rice Limited as part of China Organic Agriculture Agriculture's ongoing operations subsequent to September 2008, despite the fact that China Organic Agriculture Inc had purportedly been sold at that time.
Shares of China Organic Agriculture, Inc. rose from below $0.30 per share in early 2009 to over $1 per share in October 2009 and January 2010. However, since then Shares of China Organic Agriculture have lost substantial value and traded OTC as low as $0.014 per share.