Hagens Berman is seeking confirmation of those allegations by witnesses, and advising investors with significant losses from purchases of China Green Agriculture stock between November 12, 2009 and September 1, 2010 of their right to seek to be a lead plaintiff by December 14, 2010.
Incorporated in Nevada, China Green Agriculture develops, manufactures and distributes fertilizers. The company also develops, manufactures and distributes agricultural products, including fruits, vegetables, flowers and colored seedlings.
Allegedly, China Green Agriculture’s 2010 financial statements filed with Chinese authorities materially differed from the financial results disclosed in the company’s SEC filings. It is also alleged that China Green Agriculture’s false and misleading statements inflated the price of the company’s stock. Hagens Berman attorneys believe that, if true, this adverse information brings into question other reporting by China Green Agriculture that has caused the company’s stock price to fall over the past year, damaging shareholders.
Key questions under investigation include whether China Green Agriculture made false and misleading statements regarding Value Added Tax and Corporate Income Tax payments to Chinese tax authorities and whether China Green Agriculture overstated the amount it paid for rural farmland in China’s Shaanxi Province.
In a Sept. 13, 2010 press release, China Green Agriculture stated it made Value Added Tax payments of about $9.4 million to the Chinese State Administration of Taxation during the two-year period ending June 2010. However, records from Chinese tax authorities show China Green Agriculture made Value Added Tax payments of less than $100,000 during that period, according to news reports.
In the same Sept. 13, 2010 press release, China Green Agriculture stated it made Corporate Income Tax payments of about $2.1 million in March 2009 for tax incurred during 2008 and Corporate Income Tax payments of about $3.1 million in March 2010 for tax incurred during 2009. However, records from Chinese tax authorities show China Green Agriculture made no Corporate Income Tax payments during the periods of time in question, according to news reports.
Hagens Berman is also investigating allegations that China Green Agriculture overstated the amount it paid for 88 acres of rural farmland in China. The company stated on Sept. 25, 2009 that it paid about $10.8 million for the land purchase. However, detailed government records show that the actual price paid was only about $2.7 million, according to news reports.