Lieff Cabraser Heimann & Bernstein, LLP Announces Class Action Lawsuits Against RINO International Corporation (Nasdaq:RINO)
02 Dezember 2010 - 4:00PM
Business Wire
The law firm of Lieff Cabraser Heimann & Bernstein, LLP
announces that class action lawsuits have been brought on behalf of
purchasers of the securities of RINO International Corporation
(“RINO” or the “Company”) (Nasdaq:RINO) between February 17, 2009
and November 12, 2010, inclusive (“Class Period”).
If you purchased RINO securities during the Class Period, you
may move the Court for appointment as lead plaintiff by no later
than January 14, 2011. A lead plaintiff is a representative party
who acts on behalf of other class members in directing the
litigation. Your share of any recovery in this action will not be
affected by your decision of whether to seek appointment as lead
plaintiff. You may retain Lieff Cabraser, or other attorneys, as
your counsel in this action.
RINO shareholders that wish to learn more about this action and
how to seek appointment as lead plaintiff should visit Lieff
Cabraser’s website
at http://lieffcabraser.com/cases.php?CaseID=380 or
contact attorney Sharon Lee toll free at (800) 541-7358.
Background on RINO Securities Class
Litigation
The actions, pending in the United States District Court for the
Central District of California, were brought against RINO and
certain of its officers and directors for violations of the
Securities Exchange Act of 1934. RINO, through its subsidiaries,
operates as an environment protection and remediation company in
the People’s Republic of China.
During the Class Period, defendants allegedly issued materially
false and misleading statements regarding the Company’s business
prospects and financial results. Specifically, the actions allege
that defendants failed to disclose that RINO’s reported financial
results were materially overstated and included revenues that had
not been earned.
On November 10, 2010, Muddy Waters LLC, a research firm, posted
a report alleging that RINO and its executives engaged in a wide
range of wrongful conduct, including inflating the Company’s
reported sales revenues and fabricating customer relationships and
contracts. In addition, Muddy Waters noted a significant
discrepancy between the fiscal 2009 revenues RINO reported to the
SEC and to tax authorities in China. In response to this news, the
price of RINO’s common stock fell $2.34 per share, or more than 15
percent, to close at $13.18 per share on November 11, 2010.
On November 15, 2010, before the market opened, RINO announced
disappointing results for the third quarter 2010 and reduced its
revenue forecast for 2010. On this news, RINO’s stock fell $3.46
per share, or more than 31 percent, to close at $7.55 per
share.
On November 17, 2010, RINO disclosed in a filing with the SEC
that it had received a letter from its independent auditing firm
which recounted a conversation between a member of the firm and
RINO’s Chief Executive Officer, defendant Zou Dejun, during which
Dejun revealed that RINO had, in fact, not entered into two of the
six customer contracts discussed in the Muddy Waters report. Based
on this revelation, RINO warned investors the following day that
its previously issued financial statements for the fiscal years
ending December 31, 2008 and 2009, and the interim quarters ending
March 31, 2008 through September 30, 2009, should no longer be
relied upon.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San
Francisco, New York and Nashville, is a nationally recognized law
firm committed to advancing the rights of investors and promoting
corporate responsibility.
Since 2003, the National Law Journal has selected Lieff Cabraser
as one of the top plaintiffs’ law firms in the nation. In compiling
the list, the National Law Journal examined recent verdicts and
settlements in addition to overall track records. Lieff Cabraser is
one of only two plaintiffs’ law firms in the United States to
receive this honor for the last eight consecutive years.
For more information about Lieff Cabraser and the firm’s
representation of investors, please visit
http://www.lieffcabraser.com.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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