NEW YORK, Dec. 13, 2006 (PRIME NEWSWIRE) -- Wechsler Harwood LLP today announced that it has filed a class action suit on behalf of all securities purchasers of Bodisen Biotech, Inc. (AMEX:BBC) ("Bodisen" or the "Company") between August 26, 2005 and November 10, 2006, both dates inclusive (the "Class Period").
The action, entitled, Stubblefield v. Bodisen Biotech, Inc., et al. Case No. (not yet assigned), is pending in the United States District Court for the Southern District of New York, and names as defendants the Company as well as certain senior officers and directors. A copy of the complaint can be obtained from the Court or can be viewed on the Wechsler Harwood web site at: www.whesq.com.
According to the Company website, Bodisen "engages in the research, manufacturing and marketing of proprietary technology based environmentally friendly fertilizers targeting the $17 billion per year Chinese fertilizer industry."
The Complaint charges defendants, the Company and certain of its executive officers, with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the complaint alleges that, during the Class Period, the defendants issued materially false and misleading statements regarding the Company's business and management practices and financial results. As a result of defendants' false statements, Bodisen stock traded at artificially inflated prices during the Class period, reaching a high of $20.65 per share on January 31, 2006.
On November 12, 2006, Bodisen stunned investors with its announcement that on November 6, 2006, the Company received a Deficiency Letter from the American Stock Exchange ("AMEX") stating that the Staff had determined that the Company was not in compliance with AMEX continued listing standards. Bodisen also revealed that AMEX "believes that the Company made insufficient or inaccurate disclosure in its public filings with regard to its relationship with, and payments to, a consultancy firm and its affiliates both prior to and subsequent to its listing on the AMEX. Additionally, in the context of the Company's relationship with the consultancy firm, AMEX expressed concern that the Company has internal control issues related to its accounting and reporting obligations." Prior to receipt of the letter from AMEX, the Company publicly announced that it had terminated its relationship with the consultancy firm. On news of the restatement, the price of Bodisen stock plummeted almost 70% from a high of $10.84 on November 10, 2006, to an intra day low of $3.93 per share on November 16, 2006.
If you are a member of the class described above, you may, not later than January 15, 2007, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wechsler Harwood, or other counsel of your choice, to serve as your counsel in this action
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders, employee investors and consumers and is responsible for hundreds of millions of dollars in recoveries. The Wechsler Harwood website (http://www.whesq.com) contains detailed information regarding this matter and additional information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact plaintiff's counsel Jeffrey M. Norton at 877-935-7400 (ext. 286), Tanya Korkhov (ext. 207) or another firm representative.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca