WASHINGTON, Aug 15, 2011 (BUSINESS WIRE) -- Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether Jiangbo Pharmaceuticals, Inc. ("Jiangbo" or the "Company") and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
A class action lawsuit has been filed in the U.S. District Court for the Southern District of Florida by another law firm on behalf of purchasers of the common stock of Jiangbo Pharmaceuticals, Inc. (JGBO) between May 17, 2010 and May 31, 2011, inclusive (the "Class Period").
Jiangbo purports to be engaged in the research, development, production, marketing and sales of pharmaceutical products in China.
The complaint alleges that Jiangbo and certain of its officers and/or directors ("Defendants") made materially false and misleading statements and failed to disclose material facts concerning the Company's operations, financial condition and certain financial transactions.
After the market close on March 18, 2011, Jiangbo reported that its Chief Financial Officer had resigned her position "due to family reasons." Although the Company reported that "[t]here were no disagreements between Ms. Sung and the Company on any matter relating to the Company's operations, policies or practices, which resulted in her resignation," the price of Jiangbo shares fell from $5.88 to $5.41 on the next trading day. On the evening of May 24, 2011, Jiangbo released its results for its third fiscal quarter ended March 31, reporting that revenues and net income had fallen. The price of Jiangbo shares fell throughout this period and last traded at $3.08 on May 31, 2011, when trading was halted pending receipt of additional information requested by NASDAQ from the Company.
On June 7, 2011 the Company filed an 8-K reporting that two independent directors, who were also members of the Audit Committee, had announced their immediate resignation from the Company. In a letter to the Company's board, they stated that the "Company has created circumstances that force us to resign," and revealed that, in response to an undisclosed SEC subpoena received by Jiangbo on March 26, 2011, the Audit Committee had retained outside firms to conduct an independent investigation into the matters raised by the SEC and to provide forensic accounting services in connection with that investigation. The letter further stated that "the conduct and statements by the Company and those controlling and advising it have demonstrated a clear and continuing lack of cooperation," as a result of which the internal investigation was halted. Moreover, their letter states, "the manner and timing of the Company's payments to the Audit Committee's advisers (Cadwalader and E&Y) raise additional serious concerns regarding the veracity or correctness of banking information provided by the Company."
On August 1, Jiangbo filed an 8-K reporting that it had received a delisting notice from NASDAQ stating that NASDAQ staff "believes that the continued listing of the Company's securities on Nasdaq is no longer warranted and has determined to delist the Company" due to "[p]ublic interest concerns . . . raised by the efforts of the Company and its Chairman to obstruct the independent internal investigation authorized by its Audit Committee, and the failure to allow the Audit Committee to fulfill its responsibilities and duties," as well as the Company's failure to comply with other listing standards, including its failure to comply with Audit Committee composition requirements.
Cohen Milstein encourages all investors who purchased Jiangbo common stock between May 17, 2010 and May 31, 2011, or former employees with information concerning this matter to contact the firm.
If you are a Jiangbo 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 Jiangbo and wish to serve as lead plaintiff, you must move the Court no later than September 14, 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, Chicago, and West Palm Beach, 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 .