WASHINGTON–LAWFUEL – Law News Network – The Law Firm of Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (http://www.cmht.com) announced today that it has filed a class action complaint in the United States District Court for the Southern District of New York on behalf of purchasers of Bodisen Biotech, Inc. (“Bodisen” or the “Company”) (AMEX: BBC) common stock during the period from August 25, 2005 through November 14, 2006, inclusive (the “Class Period”).
The complaint charges Bodisen and certain of its officers with violations of the Securities Exchange Act of 1934. According to the Company’s website, the Company “engages in the research, manufacturing and marketing of proprietary technology based environmentally friendly fertilizers targeting the $17 billion per year Chinese fertilizer industry.”
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and management practices and financial results. As a result of defendants’ false statements, Bodisen stock traded at artificially inflated prices during the Class period, reaching a high of $20.65 per share on January 31, 2006.
Then, on November 12, 2006, Bodisen announced that, on November 6, 2006, the Company received a letter from the American Stock Exchange (“Amex”) stating that the Staff had determined that the Company was not in compliance with certain of the Amex continued listing standards. Bodisen also revealed that:
AMEX believes that the Company made insufficient or inaccurate disclosure in its public filings with regard to its relationship with, and payments to, a consultancy firm and its affiliates both prior to and subsequent to its listing on the Amex. Additionally, in the context of the Company’s relationship with the consultancy firm, Amex expressed concern that the Company has internal control issues related to its accounting and financial reporting obligations. Prior to receipt of the letter from Amex, the Company publicly announced that it had terminated its relationship with the consultancy firm.
According to the complaint, the true facts, which were known or recklessly disregarded by the defendants but concealed from the investing public during the Class Period, were as follows: (1) that Benjamin Wey a/k/a Benjamin Wei (“Wey” or “Wei”), a person with a history of regulatory problems, had a significant undisclosed relationship with the Company; (2) that defendants failed to disclose the true owners of the Company; (3) that Bodisen failed to adequately disclose its relationship with, and payments to, Wey and New York Global Group, Inc., a company that was an analyst of Bodisen and of which Wey was President; (4) that the Company lacked adequate internal controls; and (5) that, as a result of the foregoing, the Company’s financial statements were materially misleading and the Company’s statements about its financial well-being and future business prospects were lacking in any reasonable basis when made.
If you purchased or acquired Bodisen securities from August 25, 2005 through November 14, 2006, inclusive, you may, no later than January 15, 2007, move the court to be appointed as Lead Plaintiff. There are certain legal requirements to serve as Lead Plaintiff. Any member of the proposed class may move the court to serve as Lead Plaintiff through counsel of their choice or may choose to remain an absent class member. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as Lead Plaintiff. To be a member of the class, you need not take any action at this time.
Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Philadelphia and Chicago, and is active in major litigation pending in federal and state courts throughout the nation. You may visit the firm’s website at www.cmht.com.
The firm’s reputation for excellence has repeatedly been recognized by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total in the billions of dollars.