NEW YORK, Nov. 29, 2011 (GLOBE NEWSWIRE) -- The Egleston Law Firm and Rigrodsky & Long, P.A. today announced that a class action has been commenced on behalf of an investor in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of China Organic Agriculture, Inc. ("China Organic" or the "Company") (OTC: CNOA.PK) between November 12, 2008 through March 24, 2010, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act").
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Gregory M. Egleston of the Egleston Law Firm at (212) 683-3400, or via e-mail at egleston@gme-law.com or Timothy J. MacFall at (516) 683-3516, or via e-mail at tjm@rigrodskylong.com. Any member of the putative 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.
The complaint alleges that, during the Class Period, Defendants knew, or recklessly disregarded, that despite the Company's public representation that the sale of Jilin Songyuan City ErMaPao Green Rice Limited ("ErMaPao") had been completed in September 2008, China Organic had received no payments from the purchaser, Bothven Investments Limited ("Bothven"), at the time the sale was announced. Indeed, it was not until March 18, 2009 that Bothven signed the extension payment agreement with the Company pursuant to which Bothven agreed to pay the purchase price of $8,700,000 in 3 installments (30% in July 2009, 30% in September 2009 and 40% in October 2009). In addition, Defendants, who had reported the sale of ErMaPao, knew or recklessly disregarded that Company improperly reported results from ErMaPao as part of China Organic's ongoing operations subsequent to September 2008, despite the fact that the Company had purportedly been sold at that time.
Plaintiff seeks to recover damages on behalf of all purchasers of China Organic common stock during the Class Period (the "Class"). The plaintiff is represented by the Egleston Law Firm (http://www.gme-law.com) and Rigrodsky & Long (http://www.rigrodskylong.com/), whose attorneys have decades of experience in prosecuting securities class actions and investor class actions throughout the United States.