Yongye International, Inc. hit by Investor Lawsuit over alleged Securities Laws Violations

May 26, 2011 - PRLog -- The Shareholders Foundation announces that an investor in shares of Yongye International, Inc.  filed a lawsuit in the United States District Court for the Southern District of New York against Yongye Intl Inc over alleged violations of Federal Securities Laws.

If you purchased shares of Yongye International, Inc. (NASDAQ YONG) between August 11, 2010 and May 11, 2011, you have certain options and there are short and strict deadlines running. Deadline: July 25, 2011. Those YONG stockholders and current long term YONG investors including those who purchased (also) prior to August 2010 should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The lawsuit follows after a report concerning alleged self-dealing transactions and a more than 35% stock price drop within a few trading days.

According to the complaint the plaintiff alleges on behalf of purchasers of Yongye International, Inc. ("Yongye")  common stock during the period between August 11, 2010 and May 11, 2011 that Yongye International, Inc and certain of its officers and directors violated the Securities Exchange Act of 1934 issuing between August 11, 2010 and May 11, 2011 materially false and misleading statements regarding its business practices and financial results.

Yongye Intl reported a more then sixteen times annual Total Revenue increase over the past four years. Yongye International’s 12months Total Revenue surged from $13.14million for 2007 to $214.09million for 2010. It reported that its Net Income rose more than ten times over the same time frame, from $4.36million in 2007 to $48.44million in 2010.

Shares of Yongye International, Inc. traded during 2009 as high as $11.59 per share and reached as high as $9.09 per share on November 8, 2010

On May 9, 2011, Yongye International, Inc issued a press release announcing its first quarter 2011 financial results. Yongye Intl Inc reported revenue of $50.2 million and net income of $8.4 million, or $0.16 diluted earnings per share.

The plaintiff alleges that defendants failed to disclose that the Company's financial results were inflated and were inconsistent with Yongye Intl.'s production capabilities.

Then on May 11, 2011, Seeking Alpha issued an article entitled "Yongye International's Reported Production: SEC Filings Raise Red Flags." On May 18, 2011, an equity analyst at Absaroka Capital Management issued a report alleging  that Yongye International Inc. had engaged in undisclosed self-dealing transactions through its purchase of a $34.4 million lignite coal project, as well as through more than $25 million of purchases from its two main suppliers. The analyst also reported that Yongye Intl Inc. had falsely claimed in a television promotional campaign that its main product -- Shengmingsu - was developed by a team of scientists at Stanford University. The report contained a letter from Stanford denying that claim.

NASDAQ- YONG stock fell from $5.35 in the beginning of May to $3.32 during May 19.

Those who purchased shares of Yongye International, Inc. (NASDAQ YONG) between August 11, 2010 and May 11, 2011, have certain options and there are short and strict deadlines running. Deadline: July 25, 2011. Those YONG stockholders and current long term YONG investors including those who purchased (also) prior to August 2010 should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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The Shareholders Foundation, Inc. is a professional portfolio monitoring service and an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We believe that together we can combine the interests of many investors, and use the size of our interest as leverage against the giant corporations. We offer help, support, and assistance for every shareholder. We help investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.