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Case Status:    SETTLED
On or around 01/29/2016 (Other)

Filing Date: September 17, 2010

On September 18, 2010, the Complaint asserts violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against China-Biotics and certain of its present and former officers and directors for making material misstatements and omissions about the Company’s true financial condition.

According to the Complaint, during the Class Period Defendants misled investors about the quality, nature, and quantity of China-Biotics’ purported retail outlets and stores. The Complaint also alleges that China-Biotics’ fiscal 2008 financial statements filed with the SEC are materially false because the Company’s fiscal 2008 financial statements filed with Chinese authorities reported merely a fraction of the cash, revenue and income set forth in the Company’s 2008 financial statements with the SEC.

The Complaint asserts that when this adverse information began to enter the market, the price of China-Biotics securities dropped, damaging investors.

A similar, purported class action complaint has also been filed in the U.S. District Court for the Southern District of New York. On December 16, 2010, the plaintiff in the California case voluntarily dismissed the action. The case against China-Biotics, Inc. is now pending in New York (Hill v. China-Biotics, Inc., et al. No. 10-cv-7838).

On April 25, 2011, an Amended Complaint was filed, adding certain directors and two company underwriters as defendants named in the action. The defendants responded by filing a motion to dismiss the Amended Complaint on August 18, 2011.

According to the Order entered on December 14, 2011, Plaintiffs' claims under Section 11 of the Securities Act of 1933, against Defendants China-Biotics, Inc., the Officer and Director Defendants, Roth Capital Partners LLC, and Maxim Group LLC, are dismissed for lack of standing. Plaintiffs may have leave to replead their Section 11 claim. Any amended pleading shall be filed by January 9, 2012. Leave is granted without prejudice to any statute of limitations arguments Defendants may wish to make.

On January 9, 2012, Plaintiffs filed their Second Amended Complaint.

On October 18, 2012, the Court issued an Order consolidating cases. The Clerk of the Court was directed to designate 10 Civ. 7838 (PAC) as the lead case and to terminate 12 Civ. 4202.

On November 19, 2013, a Stipulation was filed dismissing certain defendants from this case.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Biotechnology & Drugs
Headquarters: China

SECURITIES INFORMATION:

Ticker Symbol: CHBT
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. New York
DOCKET #: 10-CV-06954
JUDGE: Hon. Dale S Fischer
DATE FILED: 09/17/2010
CLASS PERIOD START: 07/10/2008
CLASS PERIOD END: 08/30/2010
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. The Rosen Law Firm, P.A.
    333 South Grand Avenue, 25th Floor, The Rosen Law Firm, P.A., CA 90071
    213.785.2610 213.226-4684 ·
  2. The Rosen Law Firm, P.A. (New York)
    350 Fifth Avenue, Suite 5508, The Rosen Law Firm, P.A. (New York), NY 10118
    212.686.1060 212.202.3827 · lrosen@rosenlegal.com
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 10-CV-07838
JUDGE: Hon. Dale S Fischer
DATE FILED: 04/25/2011
CLASS PERIOD START: 07/10/2008
CLASS PERIOD END: 08/27/2010
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Ryan & Maniskas, LLP
    995 Old Eagle School Rd., Ste. 311, Ryan & Maniskas, LLP, PA 19087
    (484) 588-5516 (484) 450-2582 ·
  2. Saxena White PA (Boca Raton)
    2424 N. Federal Highway, Suite 257, Saxena White PA (Boca Raton), FL 33431
    561.394.3399 561.394.3399 ·
No Document Title Filing Date