Faruqi & Faruqi, LLP Announces Investigation Of China Automotive Systems Inc.
Faruqi & Faruqi, LLP, a national law firm concentrating on investor rights, is investigating potential wrongdoing at China Automotive Systems Inc. (“China Automotive” or the “Company”) (Nasdaq: CAAS). Faruqi & Faruqi, LLP seeks to determine whether certain officers and directors at China Automotive violated federal securities laws in connection with statements made to the Company’s shareholders.
The investigation focuses on whether certain individuals violated federal securities laws by, among other things, failing to disclose that: (1) China Automotive failed to account properly for its convertible notes issued on February 15, 2008; (2) as a result, the Company’s financial results were incorrect and not prepared in accordance with the United States Generally Accepted Accounting Principles (“U.S. GAAP”); and (3) the Company lacked sufficient internal financial controls.
On March 17, 2011, China Automotive declared that it expected to restate its financial statements for the 2009 fiscal year and three quarters of the 2010 fiscal year due to errors in accounting related to the Company’s convertible notes issued on February 15, 2008 and that these financial statements could no longer be relied on. Shares of China Automotive fell 13.88% to $8.81 per share in response to this unexpected announcement.
If you purchased China Automotive securities between March 25, 2010 and March 17, 2011 and you would like to discuss your legal rights, contact us by calling Anthony Vozzolo or Richard W. Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org or email@example.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding China Automotive’s conduct during the period in question to contact the firm, including whistleblowers, former employees, shareholders and others.
Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330
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