SAN DIEGO--(BUSINESS WIRE)--Robbins Umeda LLP, a shareholder rights litigation firm, has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at China Medicine Corporation (OTC: CHME.PK). China Medicine distributes pharmaceutical and medical products in the People's Republic of China through its subsidiaries Guangzhou Konzern Medicine Co., Ltd. and Guangzhou LifeTech Pharmaceutical Co., Ltd. The company was founded in 2003, and is based in Guangzhou, the People's Republic of China.
If you purchased or hold stock in China Medicine and would like more information about your shareholder rights, please contact attorney Gregory E. Del Gaizo at 800-350-6003 or via the shareholder information form on our website.
Robbins Umeda LLP is investigating whether officers and directors of China Medicine issued materially false and misleading statements designed to deceive the market and artificially inflate the company's value. In particular, we are examining whether statements from the company issued between November 30, 2006, and March 23, 2011, contained false information about the company's financial growth, increased profitability, and future business prospects.
On February 22, 2011, China Medicine announced that the company's independent auditor, Frazer Frost LLP, declined reappointment. Then, on March 23, 2011, the company filed a Form 8-K with the U.S. Securities and Exchange Commission warning that the company's financial statements from 2008-2010 were no longer reliable. Less than four months later, on July 8, 2011, the company announced that its financial statements from 2006-2007 were also inaccurate and unreliable.
News of these extreme financial improprieties caused the company's stock price to fall dramatically. On March 23, 2011, the company's stock lost over 53% of its value to close at $1.16 per share. This downward spiral would continue with shares of China Medicine stock closing at just $0.54 per share on March 24, 2011.
Robbins Umeda LLP represents individual and institutional shareholders in derivative, direct, and class action lawsuits. The law firm's skilled litigation teams include former federal prosecutors, former defense counsel from top multinational corporate law firms, and career shareholder rights attorneys. For more information, please go to http://www.robbinsumeda.com
Press release link: http://www.robbinsumeda.com/shareholders-rights-blog/china-medicine-corporation/
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