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Finkelstein Thompson LLP Announces Investigation of China-Biotics, Inc.

^{Published on 2010-10-18 15:35:18 - Market Wire}
 

WASHINGTON--([ BUSINESS WIRE ])--Finkelstein Thompson LLP announces that it is investigating potential shareholder claims against China-Biotics, Inc. (NASDAQ:CHBT) (aChina-Bioticsa or the aCompanya).

China-Biotics is a company engaged in the research, development, production, marketing, and distribution of probiotics products, which are products that contain live microbial food supplements. According to a recently-filed class action complaint, from July 10, 2008 to August 30, 2010, China-Biotics failed to disclose or misrepresented, among other things: (1) the Company had virtually no retail outlets in Shanghai and other Chinese cities, which was contrary to its representations in SEC filings, (2) the Companya™s financial statements and disclosures differed significantly from financial figures reported to local Chinese authorities, and (3) the money raised from the Companya™s September 2009 Offering of $69 million was not put towards expansion of retail outlets and stores as the Company represented to investors in its SEC filings. According to the complaint, on August 30, 2010, Citron Research released a report questioning various aspects of China-Bioticsa™ business, particularly the existence of the Companya™s stores and retail outlets the Company had represented to its investors. On this news, the Companya™s stock fell 18% on unusually high trading volume on August 30, 2010 to close at $12.03 per share.

If you are interested in discussing your rights as a China-Biotics shareholder, or have information relating to this investigation, please contact Finkelstein Thompson's Washington, DC offices at (877) 337-1050 or by email at [ contact@finkelsteinthompson.com ].

Finkelstein Thompson LLP has spent over three decades delivering outstanding representation to institutional and individual clients in financial litigation, and has been appointed as lead or co-lead counsel in dozens of shareholder class actions. Indeed, the firm has served in leadership roles in cases that have recovered over $1 billion for investors and consumers.

To learn more about Finkelstein Thompson LLP, please visit our web site at [ www.finkelsteinthompson.com ]. Attorney advertising. Prior results do not guarantee similar outcomes.