Sarraf Gentile LLP Announces Lawsuit Against Fuqi International Inc.

NEW YORK, NY--(Marketwire - April 2, 2010) -  Sarraf Gentile LLP announces that a class action lawsuit has been filed against Fuqi International, Inc. ("Fuqi" or the "Company") (NASDAQ: FUQI) and certain of its top officers. The class action was filed on behalf of purchasers of the Company's securities between May 15, 2009 and March 17, 2010, both dates inclusive, (the "Class Period") and alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The action was filed in the United States District Court for the Southern District of New York.

Fuqi is a designer of jewelry in China. The complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning Fuqi's business, operations and prospects were materially false and misleading. On March 16, 2010, the Company disclosed that Fuqi had identified certain errors related to the accounting of the Company's inventory and cost of sales, and that the result of the accounting errors was expected to have a material impact on the Company's previously issued quarterly financial statements for the first three quarters of 2009. The Company informed investors that, as a result, Fuqi's financial statements for the first three quarters of 2009 should no longer be relied upon and that the Company intended to file amendments disclosing the effect of the accounting errors. The next day, as a result of this news, the price of Fuqi stock declined $7.10 per share, or approximately 37%, to close on March 17, 2010, at $11.90 per share, on unusually heavy volume.

No class has yet been certified in the action. Until a class is certified, you are not represented by counsel unless you retain one. Sarraf Gentile LLP has not filed a lawsuit against the defendants. 

If you are a Fuqi shareholder and want to discuss your legal rights, at no cost and without obligation, please contact Joseph Gentile at Sarraf Gentile LLP (telephone: 212-868-3610; e-mail: joseph@sarrafgentile.com).

Sarraf Gentile LLP has extensive experience litigating shareholder class actions across the United States and has recovered millions of dollars on behalf of injured shareholders.

ATTORNEY ADVERTISING. Prior results do not guarantee a similar outcome.

Contact Information:

Contact:

Joseph Gentile
SARRAF GENTILE LLP
116 John Street, Suite 2310
New York, NY 10038
T 212.868.3610
F 212.918.7967
joseph@sarrafgentile.com
www.sarrafgentile.com