China-Biotics Inc. Long Term Invetor Investigation

If you are a current long term investor in securities of China-Biotics Inc. (NASDAQ:CHBT), including also those who purchased their CHBT shares prior to July 2008 and continue to presently hold those shares, you have certain options and you should contact the Shareholders Foundation.

To have your information reviewed for options and to recieve notifications about this investigation, 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-Biotics
Affected Securities: 
NASDAQ: CHBT

An investor in China-Biotics Inc. filed a lawsuit on behalf of those, who purchased CHBT shares between July 10, 2008 and August 30, 2010, over alleged violations of Federal Securities Laws by China-Biotics and others. Meanwhile an investigation on behalf of current long term investors in China-Biotics Inc. (NASDAQ:CHBT), including those who purchased CHBT shares (also) prior to July 2008 and continue to presently hold those share, over possible breaches of fiduciary duty by the China-Biotics board of directors was announced.

The investigation by a law firm on behalf of current long term China-Biotics investors concerns whether certain officers and directors of China-Biotics breached the fiduciary duty in connection with the alleged securities laws violations. According to the recently filed complaint in the U.S. District Court for the Central District of California the plaintiff alleges on behalf those, who purchased CHBT shares between July 10, 2008 and August 30, 2010, 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 reported to the SEC on March 31, 2007 for the past 12 months Total Revenue of $30.61million, China-Biotics announced on March 31, 2010 for the past 12 months Total revenue of $81.36million. Its Net Income increased over the same period from $10.90million to $15.65million. The complaint also alleges that China-Biotics' 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' 2008 financial statements with the SEC. The Complaint asserts that when this adverse information began to enter the market, the price of China-Biotics securities dropped, damaging investors. Shares of China-Biotics Inc. (NASDAQ:CHBT) traded recently at $10.08 per share, down from its 52weekHigh of $19.74 per share.