NEW YORK, July 13, 2012 /PRNewswire/ -- Faruqi &
Faruqi, LLP, a leading national securities law firm, is
investigating potential securities fraud at American Oriental
Bioengineering Inc. ("AOBI" or the "Company") (OTC Markets:
AOBI).
(Logo: http://photos.prnewswire.com/prnh/20120119/MM38856LOGO
)
The investigation focuses on whether the Company and its
executives violated federal securities laws by failing to disclose
that: (1) certain of the Company's capsule products
maintained chrome levels far exceeding humanly tolerable limits;
(2) the Company's financial statements contained material
inconsistencies; (3) the Company's internal controls over financial
reporting were deficient; and (4), as a result of the foregoing,
the Company's statements were materially false and misleading at
all relevant times.
On March 16, 2012, the Company's
independent registered public accounting firm, Ernst &
Young Hua Ming ("E&Y"), informed
AOBI's Audit Committee of inconsistencies in the Company's
financial statements for fiscal year 2011. Approximately one
month later, on April 19, 2012, the
Company disclosed "onsite short notice inspections" conducted by
the Chinese State Food and Drug Administration at four of AOBI's
five manufacturing subsidiaries after capsule products were
discovered with chrome levels far exceeding humanly tolerable
limits. Then, after being delisted by the New York Stock Exchange
on May 25, 2012, the Company's common
stock plummeted nearly 62% when it resumed trading over-the-counter
on May 29, 2012.
On June 15, 2012, the Company
disclosed that E&Y had withdrawn its audit reports for the
Company's financial statements for the years ended 2009 and 2010,
after E&Y concluded that it could no longer rely on
management's representations in connection with its audits of the
financial statements for those years.
Request more information now by clicking here:
www.faruqilaw.com/AOBI. There is no cost or obligation to
you.
Take Action
If you purchased AOBI securities between November 9, 2009 and June
15, 2012 and would like to discuss your legal rights, visit
www.faruqilaw.com/AOBI. You can also contact us by calling
Juan Monteverde, Richard Gonnello or Francis McConville toll free at 877-247-4292 or
at 212-983-9330 or by sending an e-mail to
jmonteverde@faruqilaw.com, rgonnello@faruqilaw.com or
fmcconville@faruqilaw.com. Faruqi & Faruqi, LLP also
encourages anyone with information regarding AOBI's conduct to
contact the firm, including whistleblowers, former employees,
shareholders and others.
Attorney Advertising. The law firm responsible for this
advertisement is Faruqi & Faruqi, LLP
(www.faruqilaw.com). Prior results do not guarantee or
predict a similar outcome with respect to any future matter.
We welcome the opportunity to discuss your particular case.
All communications will be treated in a confidential matter.
FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Juan Monteverde,
Esq.
jmonteverde@faruqilaw.com
Richard Gonnello, Esq.
rgonnello@faruqilaw.com
Francis McConville, Esq.
fmcconville@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
SOURCE Faruqi & Faruqi, LLP
