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Case Status:    DISMISSED    
On or around 07/14/2014 (Court's order of dismissal)

Filing Date: February 24, 2012

China Sky One Medical, Inc. produces weight loss patches, sprays, ointments, and other Chinese traditional pain relief and health and beauty products.

According to a press release dated February 24, 2012, the Plaintiffs allege the Defendants violated Federal Securities laws by releasing false and misleading statements.

The Complaint alleges that throughout the Class Period, the Company made false and/or misleading statements and/or failed to disclose that: (1) the Company improperly inflated earnings; (2) the Company's gross margins were inflated; (3) the Company lacked adequate internal and financial controls; and (4) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.

On February 15, 2012, the Company disclosed the resignation of 26 middle-management level employees, nine of whom worked in the Company's accounting department. On that same day, NASDAQ announced it had halted trading in the stock until it received adequate "additional information requested" from the Company. On these revelations, China Sky's shares declined $0.43 per share or 28%, to close at $1.10 on February 15, 2012.

On May 4, 2012, the Plaintiff filed a Notice voluntarily dismissing this action without prejudice as to all Defendants. A related case filed under Docket 12-CV-02552 in the Central District of California continues.

On May 22, 2012, the Court issued an Order appointing Lead Plaintiff and Counsel.

Lead Plaintiff filed a Motion for Class Certification and Default Judgment on May 21, 2014. On July 14, the Court issued an order denying the Motion and dismissing the case.

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