ST. PAUL, Minn., Dec. 19, 2006 (PRIME NEWSWIRE) -- Reinhardt Wendorf & Blanchfield announces that a class action lawsuit was filed in the United States District Court for the Southern District of New York, on behalf of purchasers of Bodisen Biotech, Inc. ("Bodisen" or "the Company") (AMEX:BBC) publicly traded securities during the period between August 26, 2005 through November 10, 2006, inclusive (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later than January 16, 2007. If you wish to discuss this case or have questions concerning this case or your rights or interests, please contact: Garrett D. Blanchfield of Reinhardt Wendorf & Blanchfield at 800-465-1592 or 651-287-2100, via facsimile at 651-287-2103 or via email at g.blanchfield@rwblawfirm.com. For more information about Reinhardt Wendorf & Blanchfield, visit our website at www.rwblawfirm.com.
The complaint charges Bodisen and certain of its officers and directors with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them (1) that Benjamin Wey a/k/a Benjamin Wei ("Wey" or "Wei"), a person with a history of regulatory problems, had a significant undisclosed relationship with the Company; (2) that defendants failed to disclose the true owners of the Company; (3) that Bodisen failed to adequately disclose its relationship with, and payments to, Wey and New York Global Group, Inc., a company that was an analyst of Bodisen and of which Wey was President; (4) that the Company engaged in related-party transactions which had the effect of manipulating its financial results; (5) that the Company lacked adequate internal controls; and (6) that, as a result of the foregoing, the Company's financial statements were materially misleading at all relevant times and the Company's statements about its financial well-being and future business prospects were lacking in any reasonable basis when made.
Beginning on September 20, 2006, the New York Post and CBSMarketwatch.com published a series of articles which revealed that Wey had a history of questionable securities transactions. The articles also exposed Wey's previously undisclosed role as investor advisor for Bodisen while he served as President of New York Global Group, Inc., an analyst of Bodisen. On September 29, 2006, Bodisen announced that the Company had terminated its relationship with New York Global Group, Inc.
On Sunday, November 12, 2006, Bodisen stunned investors when the Company announced that it had received a letter of noncompliance from AMEX. The Company reported that AMEX believed that Bodisen made insufficient or inadequate disclosures in its public filings regarding the Company's relationship with, and payments to, a "consultancy firm and its affiliates." AMEX was also concerned that Bodisen had "internal control issues related to its accounting and financial reporting obligations in the context of its relationship with the company." On this news, shares of the Company's stock plunged $2.23, or 20.8 percent, to close, on November 13, 2006, at $8.51 per share, on unusually heavy volume.
On November 14, 2006, the New York Post published an article regarding Bodisen which further questioned the ownership of the Company and its relationship with Wey and New York Global Group, Inc. On this news, shares of the Company's stock sank an additional $2.61, or 30.7 percent, to close, on November 14, 2006, at $5.90 per share, on unusually heavy volume.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Reinhardt Wendorf & Blanchfield. Reinhardt Wendorf & Blanchfield and its predecessor firm have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca