| Company: | Fuqi International, Inc |
| Ticker Symbol: | FUQI |
| Class Period: | May-15-09 to Mar-16-10 |
| Date Filed: | Mar-22-10 |
| Lead Plaintiff Deadline: | May-21-10 |
| Court: | Southern District of New York |
| Allegations: | |
The complaint charges defendants with violations of federal securities laws by, among other things, issuing a series of materially false and misleading statements concerning the Company's financial results and business prospects. Specifically, the complaint alleges that defendants failed to disclose that: (1) the Company's financial statements did not conform with U.S. Generally Accepted Accounting Principles (GAAP); (2) the financial statements did not fairly present the financial position of Fuqi; (3) the cost of sales for the period were understated; (4) gross profit and net income for the period were accordingly overstated; and (5) the earnings per share reported by the Company were overstated based on approximately 23.0 million weighted average number of shares outstanding. As a result, defendants were able to falsify Fuqi's financial statements for the first three quarters of 2009 by understating the costs of sales for the period, overstating gross profit and net income for the period, and overstating the reported earnings per share.
On March 16, 2010, however, the Company issued a press release, disclosing that Fuqi's internal accounting controls were in disarray and that the problems had caused them to materially misstate the Company's financial results. In response to these disclosures, the price of Fuqi's common stock dropped from $19 on the previous day to close at $11.90 on March 17, 2010, a drop of more than 37%.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
