Investors with a substantial investment in China Sky One Medical, Inc. (NASDAQ:CSKI)
According to the complaint filed in the U.S. District Court for the Southern District of New York the plaintiff alleges that defendants between April 16, 2009 and February 14, 2012 made false and/or misleading statements and/or failed to disclose that China Sky One Medical improperly inflated earnings, China Sky One Medical's gross margins were inflated, China Sky One Medical lacked adequate internal and financial controls, and as a result of the foregoing, the China Sky One Medical's statements were materially false and misleading at all relevant times.
In September 2009 the SEC issued a formal order of investigation relating to certain of China Sky One Medical’s accounting, record-keeping and disclosure practices.
Then on February 15, 2012 China Sky One Medical, Inc announced that its Chairman, President and Chief Executive Officer is being treated for a life-threatening illness. In addition China Sky One Medical, Inc said that 26 middle-management level employees have recently resigned, of which 9 were in the accounting department, 2 were in the internal controls department, 2 were in the IT department, 11 were in the sales department, and 2 were in the production center.
The same day the NASDAQ Stock Market announced that trading was halted today in China Sky One Medical, Inc. (Nasdaq: CSKI) at 10:22:17 a.m., Eastern Time, for "additional information requested" from the company at a last price of $1.10. The NASDAQ Stock Market said that Trading will remain halted until China Sky One Medical, Inc. has fully satisfied NASDAQ's request for additional information.
Those who purchased shares of China Sky One Medical, Inc. (NASDAQ:CSKI)