Tibet Pharmaceuticals, Inc. (TBET) Investor Files Class Action Lawsuit Over Alleged Securities Laws Violations
May 25, 2012 (Shareholders Foundation) -- An investor in NASDAQ:TBET shares filed a lawsuit in the U.S. District Court of the Virgin Islands against Tibet Pharmaceuticals, Inc. over alleged securities laws violations in connection with certain financial statements.
According to the complaint the plaintiff alleged on behalf of investors who purchased the securities of Tibet Pharmaceuticals, Inc. (NASDAQ:TBET) between December 28, 2010 and April 2, 2012, that Tibet Pharmaceuticals, certain of its officers and directors, and underwriters violated Federal Securities Laws. Specifically, the plaintiff alleges that defendants issued between December 28, 2010 and April 2, 2012 allegedly inaccurate statements of material fact about Tibet Pharmaceuticals’ true financial and business condition, which ultimately caused its stock (NASDAQTBET) to be halted by the NASDAQ and delisted, causing investors to lose nearly their entire investment.
Tibet Pharmaceuticals, Inc. reported that its annual Revenue rose from $15.58million in ’08 to $32.26million in 2010 and its Net Income increased from $5.93million in 2008 to $13.14million in 2010.
For the first three quarters in 2011 Tibet Pharmaceuticals, Inc. reported a combined nine months Revenue of $25.57million and a combined nine months Net Income of $7.75million.
However, shares of Tibet Pharmaceuticals, Inc. (NASDAQ:TBET) declined from $5.53 per share in January 2011 to as low as $0.72 per share in February 24, 2012.
NASDAQ:TBET shares closed on April 2, 2012 at $1.29 per share. The next day the NASDAQ stock market announced that it had halted trading in Tibet Pharmaceuticals, Inc stock for “additional information requested.”
The trading halt has rendered Tibet Pharmaceuticals stock illiquid.