Faruqi & Faruqi, LLP Files Securities Class Action Lawsuit Against China Organic Agriculture, Inc.

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Jan 25, 2012, 12:30 ET

NEW YORK, Jan. 25, 2012 /PRNewswire/ -- Notice is hereby given that Faruqi & Faruqi, LLP has filed a class action lawsuit in the United States District Court for the Southern District of New York, 12 Civ. No. 0597, on behalf of all persons who transacted in China Organic Agriculture, Inc. ("China Organic" or the "Company") common stock between the expanded class period of November 12, 2008 and May 17, 2011 inclusive (the "Class Period").

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A copy of the complaint can be viewed on the firm's website at www.faruqilaw.com/CNOA

The complaint alleges that throughout the Class Period, China Organic misled investors by (1) improperly announcing the sale of a subsidiary in 2008, when the transaction was actually completed in the second half of 2009; (2) knowingly or recklessly disregarding the reality that the Company's disclosure controls were ineffective; and (3) knowingly or recklessly disregarding the fact that the 2008 Form 10-K overstated pre-tax income by $3,015,387.

Despite China Organic's continuous restatements and officer resignations, on May 17, 2011, the Company announced that it would be filing its Form 10-Q five days late and misled the market to believe that it would ultimately be in compliance with the Securities Exchange Act of 1934's reporting requirements. However, once the market realized that the Company would not make the requisite filings, China Organic's common stock dropped to $0.01 per share.

Plaintiff now seeks to recover damages on behalf of himself and all other individual and institutional investors who transacted in China Organic common stock between November 12, 2008 and May 17, 2011, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions and actions involving corporate fraud.

If you wish to obtain information concerning joining this action, you can do so under the "Join Lawsuit" section of our website or by clicking here: www.faruqilaw.com/CNOA

If you transacted in China Organic common stock during the Class Period, you may, not later than January 30, 2012, move the court to serve as lead plaintiff of the class, if you so choose. In order to discuss this action, or if you have any questions concerning this notice or your rights or interests, please contact:

FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
[email protected]
Francis McConville, Esq.
[email protected]
Telephone: (877) 247-4292 or (212) 983-9330

SOURCE Faruqi & Faruqi, LLP