American Oriental Bioengineering, Inc. (PINK:AOBI) Investor Investigation over potential Violations of Securities Laws

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Company Name(s): 
American Oriental Bioengineering
Affected Securities: 
PINK: AOBI

June 22, 2012 (Shareholders Foundation) -- An investigation on behalf of investors in American Oriental Bioengineering, Inc. (PINK:AOBI) shares over potential securities laws violations by certain officers and directors at American Oriental Bioengineering, Inc. in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of American Oriental Bioengineering, Inc. (PINK:AOBI) concerning whether the company, certain of its officers and directors, or others have possibly violated federal securities laws. Specifically, the investigation concerns whether certain statements about American Oriental Bioengineering’s business, its prospects and its operations were potentially materially false and misleading at the time they were made.

American Oriental Bioengineering, Inc. reported that its annual Revenue rose from $160.48million in 2007 to $305.94million in 2010.

However, its Net Income fell from $43.87million in 2007, respectively $47.06million in ’08 to $16.34million in 2010.

On June 15, 2012, American Oriental Bioengineering, Inc. announced that it dismissed Ernst & Young Hua Ming , as its independent registered public accounting firm.

American Oriental Bioengineering said that on June 15, 2012, it received a letter from Ernst & Young Hua Ming in which it withdrew its reports on the financial statements and related internal control over financial reporting for the years ended and as of December 31, 2009 and 2010 and accordingly, its reports issued thereto on March 15, 2010 and 2011 can no longer be relied upon. American Oriental Bioengineering said the inconsistencies Ernst & Young Hua Ming identified, which were not resolved at the time of its dismissal,

Shares of American Oriental Bioengineering, Inc. (PINK:AOBI) closed on June 22, 2012, at $0.36 per share.