Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a
class action lawsuit in the United States District Court for the
Southern District of New York on behalf of a class consisting of all
persons or entities who purchased the common stock of Fuqi
International, Inc. ("Fuqi” or the "Company”) (NASDAQ:CTIC)
between May 15, 2009 and March 16, 2010, inclusive (the "Class Period”).
A copy of the Complaint is available from the court or from Glancy
Binkow & Goldberg LLP. Please contact us by phone to discuss this action
or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at
(888) 773-9224, by email at shareholders@glancylaw.com,
or visit our website at http://www.glancylaw.com.
The Complaint charges Fuqi and certain of the Company’s executive
officers with violations of federal securities laws. Fuqi is a leading
designer of high quality precious metal jewelry in China, developing,
promoting and selling a broad range of products in the large and rapidly
expanding Chinese luxury goods market. The Complaint alleges that
throughout the Class Period defendants knew or recklessly disregarded
that their public statements concerning Fuqi’s business, operations and
prospects were materially false and misleading. Specifically, defendants
made false and/or misleading statements and/or failed to disclose: (1)
that the Company’s wholesale business was slowing; (2) that the
Company’s cost of sales was understated during the Class Period; (3)
that, as a result, the Company’s financial results were overstated
during the Class Period; (4) that the Company’s financial results were
not prepared in accordance with Generally Accepted Accounting Principles
("GAAP”); (5) that the Company lacked adequate internal and financial
controls; and (6) that, as a result of the above, the Company's
financial statements were materially false and misleading at all
relevant times.
On March 16, 2010, after the market closed, the Company disclosed that
Fuqi had identified certain errors related to the accounting of the
Company’s inventory and cost of sales, and that the result of the
accounting errors was expected to have a material impact on the
Company’s previously issued quarterly financial statements for the first
three quarters of 2009. The Company informed investors that, as a
result, Fuqi’s financial statements for the first three quarters of 2009
should no longer be relied upon and that the Company intended to file
amendments disclosing the effect of the accounting errors.
The next day, as a result of this news, the price of Fuqi stock declined
$7.10 per share, or approximately 37%, to close on March 17, 2010, at
$11.90 per share, on unusually heavy volume.
Plaintiff seeks to recover damages on behalf of class members and is
represented by Glancy Binkow & Goldberg LLP, a law firm with significant
experience in prosecuting class actions, and substantial expertise in
actions involving corporate fraud.
If you are a member of the class described above, you may move the
Court, no later than 60 days from the date of this Notice, to serve as
lead plaintiff, however, you must meet certain legal requirements. If
you wish to discuss this action or have any questions concerning this
Notice or your rights or interests with respect to these matters, please
contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801
Avenue of the Stars, Suite 311, Los Angeles, California 90067, by
telephone at (310) 201-9150 or Toll Free at (888) 773-9224, by e-mail to shareholders@glancylaw.com,
or visit our website at http://www.glancylaw.com.
