Cohen Milstein Sellers & Toll PLLC Announces Investigation of Yuhe International, Inc.
25 Juli 2011 - 3:17PM
Business Wire
Cohen Milstein Sellers & Toll PLLC is conducting an
investigation to determine whether Yuhe International, Inc. (“Yuhe”
or the “Company”) and certain of its officers, directors and/or
underwriters made false and misleading statements and/or omissions
in violation of Sections 10(b) and 20(a) of the Securities Exchange
Act of 1934, and/or violated Sections 11, 12(a) (2) and 15 of the
Securities Act of 1933.
Class action lawsuits have been filed in the U.S. District
Courts for the Southern District of Florida, the Southern District
of New York, and the Central District of California by other law
firms on behalf of all purchasers of the common stock of Yuhe
International, Inc. (NASDAQ: YUII) between December 31, 2009 and
June 23, 2011, inclusive (the “Class Period”).
Yuhe International, Inc. is a supplier of chickens raised for
meat production or broilers in China. The complaints allege that
Yuhe and certain of its officers and/or directors (“Defendants”)
misrepresented and/or failed to disclose that: (1) Yuhe's financial
results as reported to the SEC for the fiscal years ended 2009 and
2010 were materially false and misleading; (2) Yuhe lied to
investors about its purported acquisition of thirteen farms from
Weifangshi Dajiang Qiye Group Co. Ltd. ("Dajiang"); and (3) Yuhe's
business was not growing at the rate represented by Defendants.
On December 31, 2009, Yuhe filed an 8-K reporting that it had
entered into an agreement to purchase thirteen farms from Dajiang
for total consideration of approximately $15.2 million. On June 13,
2011, the website GeoInvesting.com issued a report revealing that,
during a series of telephone interviews with Dajiang’s Chairman and
General Manager, Xuejiang Zheng (“Zheng”), Zheng “categorically
denied the farms had been sold to [Yuhe].” This was confirmed by
Global Hunter Securities, one of the underwriters of the Company’s
October 2010 offering, which subsequently suspended its coverage of
Yuhe.
Although initially denying the allegations, by June 17, 2011,
the Company admitted during a conference call that it had not
purchased the farms from Dajiang after all. Instead, the Company
claimed it had decided to purchase thirteen different farms with
the same capacity as the Dajiang farms, for the same price as those
farms, and stated that “[t]he company remained highly confident in
its previously issued net profit guidance.” Yuhe shares fell to
$1.2099 on June 17 before trading was halted.
On June 23, Yuhe reported that its auditor had terminated its
relationship with the Company, “due to the Company’s management’s
misrepresentation and failure to disclose material facts
surrounding certain acquisition transactions and off-balance sheet
related party transactions.”
Cohen Milstein encourages all investors who purchased Yuhe
common stock, including investors who purchased pursuant to the
Company’s offering on or about October 20, 2010, or former
employees with information concerning this matter, to contact the
firm.
If you are a Yuhe shareholder and would like to discuss your
right to recover for your economic loss, you may, without any cost
or obligation, call Cohen Milstein’s Managing Partner, Steven J.
Toll at (888) 240-0775 or (202) 408-4600, or email him at
stoll@cohenmilstein.com. If you purchased the common stock of Yuhe
and wish to serve as lead plaintiff, you must move the Court no
later than August 23, 2011 to request that the Court appoint you as
lead plaintiff. A lead plaintiff is a representative party acting
on behalf of other class members in directing the litigation. To be
appointed lead plaintiff, the Court must decide that your claim is
typical of the claims of other class members, and that you will
adequately represent the class. Your share in any recovery will not
be enhanced or diminished by the decision whether or not to serve
as a lead plaintiff. Any member of the proposed class may retain
Cohen Milstein Sellers & Toll PLLC or other attorneys to serve
as your counsel in this action, or you may do nothing and remain an
absent class member.
Cohen Milstein Sellers & Toll PLLC has significant
experience in prosecuting investor class actions and actions
involving securities fraud. The firm has offices in Washington,
D.C., New York, Philadelphia, and Chicago, and is active in major
litigation pending in federal and state courts throughout the
nation.
The firm’s reputation for excellence has repeatedly been
recognized by courts which have appointed the firm to lead
positions in complex multi-district or consolidated litigation.
Cohen Milstein Sellers & Toll PLLC has taken a lead role in
numerous important cases on behalf of defrauded investors, and has
been responsible for a number of outstanding recoveries which, in
the aggregate, total over a billion dollars. Prior results do not
guarantee a similar outcome. For more information visit
www.cohenmilstein.com.
If you have any questions about this notice or the action, or
with regard to your rights, please contact either of the
following:
Steven J. Toll, Esq.Tyler GaffneyCohen
Milstein Sellers & Toll PLLC1100 New York Avenue, N.W.West
Tower, Suite 500Washington, D.C. 20005Telephone: (888) 240-0775 or
(202) 408-4600Email: stoll@cohenmilstein.com;
tgaffney@cohenmilstein.com
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