China Shenghuo Pharmaceutical Holdings Agrees to Settlement In Shareholder Class Action

You must submit the settlement "Proof" form attached below, in order to participate in this settlement. There is a strict deadline of May 17, 2011 by which all claims must be submitted. The instructions for submitting are included in the "Proof" and the "Notice" files attached below for your download. DO NOT SEND THE FORMS TO THE SHAREHOLDERS FOUNDATION, FOLLOW THE DIRECTIONS IN THE "PROOF".

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Company Name(s): 
China Shenghuo Pharmaceutical Holdings
Case Name: 
China Shenghuo Pharmaceutical Holdings Class Action 08/21/2008
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Case Status: 
Settlement Approved
Affected Securities
AMEX: KUN
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
08/21/2008
Class Period Begin: 
08/16/2007
Class Period End: 
08/19/2008
Court of Filing: 
U.S. District Court for the Southern District of New York
Date Settled: 
03/18/2011
Settlement Amount: 
$800,000
Deadline to Participate in Settlement: 
05/17/2011
Settlement Notice: 
application/pdf iconnotice_china_shenghuo.PDF
Settlement Proof: 
application/pdf iconproof_china_shenghuo.PDF
Summary: 

March 2011 - Final approval by the court of a settlement agreement resolving and dismissing all claims asserted against the company in the consolidated class action lawsuit. China Shenghuo is contributing US $200,000 towards a total settlement fund of $600,000.

November 2010 - If you purchased or otherwise acquired the common stock of China Shenghuo Pharmaceutical Holdings, Inc. (“China Shenghuo”) during the period from August 16, 2007 through August 19, 2008, inclusive, you could get a payment from a class action settlement. Cohen Milstein Sellers and Toll announced that the United States District Court for the Southern District of New York has approved the following announcement of a proposed class action settlement that, if approved, would benefit certain purchasers of shares of China Shenghuo Pharmaceutical Holdings, Inc. (AMEX: KUN) The Court will hold a Settlement Hearing on March 18, 2011, at 11:00 a.m., at the United States District Court for the Southern District of New York in New York, New York. At this hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate and whether to approve the Settlement.

August 2008 - According to a law firm press release, plaintiffs filed a class action lawsuit on behalf of all purchasers of China Shenghuo Pharmaceutical Holdings, Inc. allegiving violations of the Securities Exchange Act of 1934.

The complaint charges that CSP and certain of its officers and directors violated Sections 10(b) and 20(a) of the 1934 Act by issuing materially false and misleading statements pertaining to CSP’s business prospects and condition, and filing materially false financial statements with the SEC. On August 20, 2008, the Company announced that its previously issued financial statements for the fiscal periods ended June 30, September 30, and December 30, 2007 and fiscal quarter ended March 31, 2008, should no longer be relied upon and would be restated due to certain accounting errors, internal control issues and related matters. News that the Company’s financial statements must be restated caused the Company’s stock price to fall dramatically damaging investors.

According to the complaint on August 20th, 2008, the China Shenghuo Pharmaceutical Holdings, Inc. announced that its previously issued financial statements for the fiscal periods ended June 30th, September 30, and December 30th, 2007 and fiscal quarter ended March 31st, 2008, should no longer be relied upon and would be restated due to certain accounting errors, internal control issues and related matters. This adverse announcement shocked the market causing the Company’s stock to fall approximately 25%.

The complaint charges that China Shenghuo Pharmaceutical Holdings, Inc. and certain of its officers and directors violated Sections 10(b) and 20(a) of the 1934 Act by issuing materially false and misleading statements pertaining to CSP’s business prospects and condition, and filing materially false financial statements with the SEC. The news from August 20th, 2008 that the Company’s financial statements must be restated caused the Company’s stock price to fall dramatically damaging investors.