NEW YORK, March 22, 2010 (GLOBE NEWSWIRE) -- 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 on behalf of all purchasers of Fuqi International, Inc. ("Fuqi" or the "Company") (Nasdaq:FUQI) common stock between May 15, 2009 and March 16, 2010, inclusive (the "Class Period"). A copy of the complaint filed in this action can be viewed on the firm's website at www.faruqilaw.com
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%.
Plaintiffs seek to recover damages on behalf of themselves and all other individual and institutional investors who purchased or otherwise acquired Fuqi common stock between May 15, 2009 through March 16, 2010, excluding defendants and their affiliates. Plaintiffs are 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 at: www.faruqilaw.com
If you purchased Fuqi common stock during the Class Period, you may, not later than May 17, 2010, move the court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact: