LOS ANGELES, March 14, 2011 (GLOBE NEWSWIRE) -- Glancy Binkow & Goldberg LLP announces that all persons or entities who purchased or otherwise acquired the securities of China Agritech, Inc. ("China Agritech" or the "Company") (Nasdaq:CAGC) between February 8, 2010 and February 3, 2011, inclusive (the "Class Period"), have 29 days until the April 12, 2011 deadline to move the Court to serve as Lead Plaintiff in the securities fraud class action lawsuit. The case filed by Glancy Binkow & Goldberg LLP, Pepperdine v. China Agritech, Inc., et al., No. CV-11-01441-RGK, has been assigned to the Honorable R. Gary Klausner, United States District Judge for the Central District of California.
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201‑9150 or Toll Free at (888) 773‑9224, by email to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com.
China Agritech, through its subsidiaries, manufactures and sells organic liquid compound fertilizers, organic granular compound fertilizers, and related agricultural products in the People's Republic of China. The Complaint alleges that defendants issued false and/or misleading statements and/or failed to disclose that, among other things: (1) certain of the Company's manufacturing facilities were idle or producing far less fertilizer than the Company portrayed; (2) the Company did not have the equipment to support its claimed production capacity; (3) the Company did not receive a license to manufacture granular compound fertilizer; (4) the Company had misrepresented its fertilizer production levels and sales; and (5), as a result, the Company's statements were materially false and misleading at all relevant times.
On February 3, 2011, analyst firm Citron Research published a report questioning China Agritech's financial statements and claimed production capacity. The report alleged that the Company has misrepresented the scope of its operations and that its financial statements filed with the Securities and Exchange Commission were materially different than the financial statements the Company's subsidiaries had filed with Chinese authorities.
As a result of this news, China Agritech shares declined $0.93 per share, or 8.63%, to close on February 3, 2011, at $9.85 per share, on unusually heavy volume.
The Private Securities Litigation Reform Act of 1995 ("PSLRA") requires the Court to appoint a "Lead Plaintiff" in this case. Any person or group who suffered a loss as a result of purchasing China Agritech securities between February 8, 2010 and February 3, 2011, may ask the Court to be appointed as Lead Plaintiff, but must file a motion no later than the April 12, 2011 deadline.
Glancy Binkow & Goldberg LLP is a law firm with significant experience in prosecuting class actions, substantial expertise in actions involving corporate fraud, and is representing China Agritech shareholders in this litigation.
If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201‑9150, Toll Free at (888) 773‑9224, by e‑mail to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com.