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China Organic Agriculture may have misled investors in its IPO about its true business operations and senior executives made millions by artificially inflating the stock price.
Investigation Source (Case #08-cv-10810)
- Nationwide
Investigation Scope
Category Information
Investigation Topics
- Investments
- False And Misleading Statements
- Registration Statement
- Insider Selling/Undisclosed Related Party Transactions
- Foreign Corporation
- Lead Plaintiff Not Chosen
Product or Service
- Investments
Injury Type
- Monetary Loss
Investigation Details
This is a securities class action lawsuit against China Organic Agriculture, Inc.
China Organic is engaged in the distribution and production of premium and natural foods, including green and organic rice.
China Organic went public in early 2007. The class action lawsuit alleges that China Organic misled investors in its IPO offering documents and thereafter in public statements and filing when it claimed to be developing organic rice for sale in China, but according to the complaint, never developed any kind of product that could be sold at a competitive price.
These types of statements by China Organic were false and misleading, designed to inflate the price of China Organic's stock. Indeed, according to the complaint, insiders sold tens of millions of dollars worth of China Organic stock during the Class Period, acquired for themselves a luxury retreat in California, sold off China Organic's only significant operation and within eighteen months of taking China Organic public left only an empty shell and huge shareholder losses.
China Organic is engaged in the distribution and production of premium and natural foods, including green and organic rice.
China Organic went public in early 2007. The class action lawsuit alleges that China Organic misled investors in its IPO offering documents and thereafter in public statements and filing when it claimed to be developing organic rice for sale in China, but according to the complaint, never developed any kind of product that could be sold at a competitive price.
These types of statements by China Organic were false and misleading, designed to inflate the price of China Organic's stock. Indeed, according to the complaint, insiders sold tens of millions of dollars worth of China Organic stock during the Class Period, acquired for themselves a luxury retreat in California, sold off China Organic's only significant operation and within eighteen months of taking China Organic public left only an empty shell and huge shareholder losses.
Defendant Details
| Name (Stock Symbol) | Brief Description |
|---|---|
| China Organic Agriculture, Inc. (CNOA) | China Organic Agriculture, Inc. manufactures and distributes green and organic rice in China and distributes other third party food products in China. |