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Law Offices of Howard G. Smith Announces Class Action Lawsuit Against Yuhe International, Inc.

^{Published on 2011-07-05 21:40:21 - Market Wire}
 

BENSALEM, Pa.--([ BUSINESS WIRE ])--Law Offices of Howard G. Smith, representing investors of Yuhe International, Inc. (aYuhea or the aCompanya) (NASDAQ:YUII), has filed a class action lawsuit in the United States District Court for the Central District of California on behalf of a class (the aClassa) consisting of all persons or entities who purchased the securities of Yuhe between December 31, 2009, and June 17, 2011, inclusive (the aClass Perioda).

Yuhe engages in the supply of day-old chickens raised for meat production or broilers in the Peoplea™s Republic of China. The Company purchases breeding stocks from primary breeder farms, raises them for hatching eggs, and sells live, day-old broilers. The Complaint alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company had failed to execute a purchase agreement for Yuhea™s announced purchase of 13 breeder farms from Weifang Dajiang Corporation (aWeifanga); (2) that the Company had not completely paid both the initial amount and remaining balance, totaling more than $12 million, of the agreementa™s total consideration to Weifang; (3) that the Company lacked adequate internal and financial controls; and (4) that, as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.

On June 16, 2011, a research report was published on the Internet alleging that the Company had misrepresented the details surrounding its acquisition of thirteen breeder farms from Weifang in 2009 and called into question the accuracy of the financial statements Yuhe had filed with the Securities and Exchange Commission during the Companya™s 2009 and 2010 fiscal years. Specifically, the report alleged that Yuhe never reached or executed an agreement with Weifang and that the $12.1 million deposit allegedly paid to acquire the farms may have been misappropriated.

No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased Yuhe securities between December 31, 2009, and June 17, 2011, you have until August 23, 2011, to move for lead plaintiff status. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. 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 Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, Toll-Free at (888) 638-4847, by email to [ howardsmith@howardsmithlaw.com ] or visit our website at [ http://www.howardsmithlaw.com ].