Case Page

 

Case Status:    SETTLED
On or around 01/07/2014 (Date of order of final judgment)

Filing Date: July 15, 2011

According to the complaint filed on July 15, 2011, plaintiffs claim violations of federal securities laws based on the defendant’s allegedly misleading financial restatements.

During the class period, the plaintiff stated that the company reported significant financial growth and increased profitability. For example, at an investor conference held in New York City in December 2010 the company described that between 2006 and 2009 it achieved a compound annual growth rate ("CAGR") in revenues of 39%, a CAGR of 28% with respect to gross profit, 26% with respect to operating income and 23% for net income.

On March 23, 2011, the company announced that its financial statements were no longer considered reliable and that it was conducting an internal assessment of the accounting and reporting practices at its wholly owned subsidiaries. On this news, shares of the company's stock declined more than 53%, from a close of $1.16 per share on March 23, 2011, prior to announcement of the Company's accounting errors and internal investigation, to a close of $0.54 per share on March 24,2010, the first full trading day after announcement, on heavy trading volume.

Based on these allegations, the plaintiffs claim that the initial statements released by the defendants were materially misleading and that the plaintiff suffered a loss from relying on those statements.

On October 21, 2011, the Court issued an Order consolidating pending cases under the docket number 11-CV-01061. Additionally, the Court assigned the Lead Plaintiff and approved of the Lead Counsel. On December 20, 2011, the plaintiffs filed their consolidated class action complaint.

On May 10, 2012, the Court issued an Order denying Defendant's motion to dismiss.

On January 31, 2013, the parties filed a Stipulation of Settlement. On May 3, the parties filed an amended Stipulation which wholly supersedes and replaces the earlier Stipulation. The Settlement was preliminarily approved by the Court on May 16. On January 7, 2014, the Court issued an Order granting final approval of the Settlement and also approving attorneys' fees and expenses.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Biotechnology & Drugs
Headquarters: China

SECURITIES INFORMATION:

Ticker Symbol: CHME
Company Market: Pink Sheets
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: C.D. California
DOCKET #: 11-CV-01061
JUDGE: Hon.Josephine Staton Tucker
DATE FILED: 07/15/2011
CLASS PERIOD START: 11/30/2006
CLASS PERIOD END: 03/23/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Abraham, Fruchter & Twersky (San Diego)
    12526 High Bluff Drive, Suite 300, Abraham, Fruchter & Twersky (San Diego), CA 92130
    858.792.3448 858.792.3448 ·
  2. Abraham, Fruchter & Twersky LLP
    One Penn Plaza, Suite 2805, Abraham, Fruchter & Twersky LLP, NY 10119
    (212) 279-5050 (212) 279-3655 ·
No Document Title Filing Date
COURT: C.D. California
DOCKET #: 11-CV-01061
JUDGE: Hon.Josephine Staton Tucker
DATE FILED: 12/20/2011
CLASS PERIOD START: 12/04/2006
CLASS PERIOD END: 03/23/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Abraham, Fruchter & Twersky (San Diego)
    12526 High Bluff Drive, Suite 300, Abraham, Fruchter & Twersky (San Diego), CA 92130
    858.792.3448 858.792.3448 ·
No Document Title Filing Date