MILWAUKEE, Dec. 7, 2006 (PRIME NEWSWIRE) -- Ademi & O'Reilly, LLP announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of all persons who purchased or otherwise acquired the common stock of Bodisen Biotech, Inc. ("Bodisen" or the "Company") (AMEX:BBC) between August 26, 2005 and November 14, 2006, inclusive, (the "Class Period").
If you are a member of this class and wish to view a copy of a complaint and join this class action, please contact us toll-free at (866) 264-3995 or via e-mail at gademi@ademilaw.com, and request a copy of the complaint and a plaintiff certification. If you are a member of the Class, you may move the Court no later than January 15, 2007 to serve as a lead plaintiff for the Class. Any member of the purported 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 Bodisen and certain of its officers and directors, and Benjamin Wey a/k/a Benjamin Wei and his company New York Global Group, Inc. ("NYGG"), violated federal securities laws by issuing a series of materially false statements. Specifically, it is alleged that defendants issued materially false and misleading information:
(a) That the Company made insufficient and/or inaccurate disclosure
in public filings on its relationship with, and payments to,
NYGG and its affiliates both prior to and subsequent to its
listing on the exchange;
(b) That the Company has deficient internal control issues related
to its accounting and financial reporting obligations in the
context of its relationship with NYGG;
(c) That some of the Company's majority shareholders were part of
or otherwise affiliated with several criminal organizations. In
fact, during the Class Period, there were mysterious sales of
more than $40 million worth of recent Bodisen stock sales, most
of which flowed through either NYGG or the troubled brokerage,
Chicago Investment Group. In March 2006, Chicago Investment
Group was named in a Brooklyn federal indictment as one of 15
New York-area brokerage firms with branch offices that had been
infiltrated and taken over by members of the Colombo, Luchese
and Bonanno crime families;
(d) That Wey had moved to New York to escape a history of regulatory
violations at previous employers in the Midwest;
(e) That Bodisen and two other Chinese companies with shares trading
in the U.S. were linked in an investment network that Wei
secretly controlled;
(f) That Company's Form 10-Q filed in March 2006, which stated, in
part, that Bodisen filed an audited financial statement with the
SEC acknowledging that its ownership list was incomplete
"do (sic) to an inadvertent oversight," but that it was working
to "rectify the problem." Nevertheless, by the end of the Class
Period, it still had not filed a corrected statement, even though
evidence surfaced in the eruption of insider stock sales in
Bodisen's shares in September 2006 that an individual named Wei
Min Zhang was a recent owner of more than 10 percent of the
Company's shares. In truth, defendants never had the intention
of providing such information;
(g) Publicly traded companies in the U.S. are required by law to
provide audited annual financial statements that include the
names of all investors holding 10 percent or more of the
company's stock. Nevertheless, defendants not only failed to
provide such information, but actively concealed such
information;
(h) That Wey acted as Bodisen's Investor Relations Officer, though
his behind-the-scenes activities as its deal promoter continued.
Several Bodisen SEC filings name NYGG in a $300,000 contract to
sell unregistered Bodisen stock to investors in London early
in 2006; and
(i) That the Company originated as a Canadian penny stock called
Bullet Environmental Systems, headed by a man named Ross Wilmot,
a longtime investment world associate of a notorious one-time
European boiler room operator named Altaf Nazerali.
On November 12, Bodisen issued a press release stating that it had received a letter from the American Stock Exchange ("AMEX") warning that it is out of compliance with certain listing standards. The exchange said it believes Bodisen made insufficient or inaccurate disclosure in public filings on its relationship with, and payments to, NYGG and its affiliates both prior to and subsequent to its listing on the exchange. The AMEX also expressed concern that Bodisen has internal control issues related to its accounting and financial reporting obligations in the context of its relationship with the company.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.