Shareholder Class Action Filed Against Fuqi International, Inc. by the Law Firm of Barroway Topaz Kessler Meltzer & Check, LLP

RADNOR, Pa., April 8 /PRNewswire/ -- The following statement was issued today by the law firm of Barroway Topaz Kessler Meltzer & Check, LLP:

Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of purchasers of the securities of Fuqi International, Inc. (Nasdaq: FUQI) ("Fuqi" or the "Company"), between May 15, 2009 and March 16, 2010, inclusive (the "Class Period").

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Barroway Topaz Kessler Meltzer & Check, LLP (Darren J. Check, Esq. or David M. Promisloff, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at [email protected].

The Complaint charges Fuqi and certain of its officers and directors with violations of the Securities Act of 1933 and Securities Exchange Act of 1934.  Fuqi is a designer of precious metal jewelry in China, and develops, promotes and sells a range of products in the Chinese luxury goods market.  More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them:  (1) the Company's reported cost of sales was materially understated; (2) the Company's reported gross profit and net income were materially overstated; (3) the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles; (4) the Company lacked adequate internal and financial controls; and (5) as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.

On March 16, 2010, Fuqi shocked investors when it disclosed that it had identified "certain accounting errors that are expected to have a material impact on the previously issued quarterly financial statements for the first three quarters of 2009."  The Company also revealed that "as a result of the accounting errors, the cost of sales for each of the periods were understated and gross profit and net income, as a result, were accordingly overstated."  Additionally, the Company estimated that its "previously issued financial statements for the nine months ended September 30, 2009 were overstated by approximately $0.15 – $0.19 per share." On this news, shares of the Company's stock fell $7.10 per share, or over 37 percent, to close on March 17, 2010 at $11.90 per share, on unusually heavy trading volume.  

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Barroway Topaz Kessler Meltzer & Check which prosecutes class actions in both state and federal courts throughout the country.  Barroway Topaz Kessler Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.

For more information about Barroway Topaz Kessler Meltzer & Check, or for additional information about participating in this action, please visit www.btkmc.com.

If you are a member of the class described above, you may, not later than  May 18, 2010, move the Court to serve as lead plaintiff of the class, if you so choose.  A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation.  In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class.  Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.  Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.  

SOURCE Barroway Topaz Kessler Meltzer & Check, LLP