China Sky One Medical Inc. (NASDAQ:CSKI) Shareholder Class Action Lawsuit

An investor filed a class-action suit against China Sky One Medical Inc. (NASDAQ:CSKI), alleging the company made false and/or misleading statements and failed to disclose it had improperly inflated earnings. The complaint was filed on Feb. 24, 2012, in U.S. District Court for the Southern District of New York on behalf of all purchasers of CSKI stock between April 16, 2009, and Feb. 14, 2012.

If you have purchased shares of China Sky One Medical Inc. (NASDAQ:CSKI) between April 16, 2009, and Feb. 14, 2012, call 1-800-934-2921 right now to protect your rights.

Filing deadline: April 24, 2012

The lawsuit alleges violations of sections 10(b) and 20(a) of the Securities Exchange Act, claiming China Sky One Medical inflated its gross margins, exercised inadequate internal and financial controls, and issued statements that were materially false and misleading. 

In 2007, China Sky One Medical Inc. reported $49.32 million in 12-month total revenue and $15.33 million in net income. In 2010, it reported a substantial increase in revenue and net income, claiming $132.66 million in 12-month total revenue and $35.96 million in net income. The Securities and Exchange Commission ordered an investigation of the company's record-keeping, accounting and disclosure practices on Sept. 4, 2009.

On Feb. 15, 2012, China Sky One Medical Inc. announced that the company's CEO, who was also the company's president and chairman, was being treated for a life-threatening illness. The company also announced that 26 middle managers recently resigned. Also on Feb. 15, Nasdaq halted trading in CSKI, saying it was requesting additional information from the company. The stock price dropped that day from $1.38 to $1.10 per share. Trading resumed in March. At the close of the market on April 4, 2012, the share price of CSKI was $0.30.

China Sky One Medical Inc. is a Chinese company based in Harbin. Through its subsidiaries, it makes and distributes nutritional supplements and over-the-counter herb- and plant-based remedies. 

Own shares of China Sky One Medical Inc. (NASDAQ:CSKI)? Contact us to protect your rights.

If you have purchased shares of China Sky One Medical Inc. (NASDAQ:CSKI) between April 16, 2009, and Feb. 14, 2012, call 1-800-934-2921 right now to protect your rights., complete the form on this page or call attorney Bill Kyros at 1-800-934-2921 right now to protect your rights. The deadline for this lawsuit is 04/24/12. 

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