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China Shenghuo Pharmaceutical Class Action Settlement Of Securities Fraud Class Action Lawsuit

If you purchased or otherwise acquired the common stock of China Shenghuo Pharmaceutical Holdings during the period from August 16, 2007 through August 19, 2008, you could get a payment from a class action settlement.

A class action settlement has been reached in a securities fraud class action lawsuit against China Shenghuo Pharmaceutical Holdings, Inc. (“China Shenghuo Pharmaceutical” or “China Shenghuo”), certain of China Shenghuo Pharmaceutical’s officers and directors and Hansen Barnett & Maxwell, P.C. (“Hansen Barnett & Maxwell”), China Shenghuo Pharmaceutical’s outside auditor (collectively “Defendants”) in the United States District Court for the Southern District of New York (styledVarghese v. China Shenghuo Pharmaceutical Holdings, Inc., et al., Class Action Case No. 08-CV-7422 VM) alleging, among other things, that Defendants violated the federal securities laws by issuing materially false and misleading financial statements and information to investors about China Shenghuo’s sales and revenues and by failing to comply with U.S. accounting rules (and as to Defendant Hansen Barnett & Maxwell by issuing a false and misleading opinion about the accuracy of China Shenghuo’s financial statements), according to the China Shenghuo Pharmaceutical securities fraud class action lawsuit settlement notice.

The China Shenghuo Pharmaceutical securities fraud class action lawsuit settlement reportedly provides that Defendants will a create a Settlement Fund (the “Settlement Fund”) in the amount of $800,000, a portion of which will be used to pay Plaintiffs’ attorneys’ fees and reasonable litigation expenses, to pay taxes due on interest earned by the Settlement Fund, if necessary, and any notice and claims administration expenses permitted by the Court, and after these deductions from the Settlement Fund have been made, the amount remaining (the “Net Settlement Fund”) will be reportedly distributed to Class Members who submit timely and valid claims.

The Court will reportedly hold a Settlement Hearing on March 18, 2011, at 11:00 a.m., at the United States District Court for the Southern District of New York, 500 Pearl Street, New York, New York 10007 to consider, among other things, whether the China Shenghuo Pharmaceutical class action settlement is fair, reasonable, and adequate and whether to approve the China Shenghuo Pharmaceutical class action settlement.

For more information on the China Shenghuo Pharmaceutical class action settlement, read the class action settlement notice.

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