| Pomerantz Law Firm Reminds Shareholders of American Oriental
Bioengineering, Inc. of Upcoming Deadline -- AOBI
NEW YORK, July 27, 2012 (GLOBE NEWSWIRE) -- Shareholders of American
Oriental Bioengineering, Inc. ("AOBI" or the "Company") (OTC:AOBI) are
reminded of the federal securities class action filed against AOBI and
certain of its officers. The securities class action (12-cv-05789),
filed in United States District Court, Central District of California,
is on behalf of all persons who purchased or otherwise acquired
securities between November 9, 2009 and June 15, 2012, inclusive (the
"Class Period"). This securities class action seeks to recover damages
caused by the Company's violations of the federal securities laws and
to pursue remedies under Sections 10(b) and 20(a) of the Securities
Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased AOBI securities during the Class
Period, you have until Wednesday, August 22, 2012 to ask the Court to
appoint you as lead plaintiff for the class. A copy of the complaint
can be obtained at www.pomerantzlaw.com. To discuss this action,
contact Rachelle R. Boyle at firstname.lastname@example.org or 888.476.6529 (or
888.4-POMLAW), toll free, x237. Those who inquire by e-mail are
encouraged to include their mailing address and telephone number.
AOBI is a pharmaceutical company dedicated to improving health through
the development, manufacture and commercialization of a broad range of
pharmaceutical and healthcare products. The Complaint alleges that,
throughout the Class Period, defendants made false and/or misleading
statements, as well as failed 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 the Company's
Audit Committee of certain inconsistencies in the Company's financial
statements during its audit for the fiscal year 2011.
On April 19, 2012, the Company disclosed that four of its five
manufacturing subsidiaries were undergoing "onsite short notice
inspections" by the Chinese State Food and Drug Administration after
discovering thirteen types of capsule products with chrome levels far
exceeding humanly tolerable limits.
After being delisted by the New York Stock Exchange on May 25, 2012,
the Company's common stock plummeted $0.94 or nearly 62%, to close at
$0.58 when it resumed trading over the counter on May 29, 2012.
On June 15, 2012, the Company disclosed that it had dismissed E&Y as
its independent registered public accounting firm. In addition, the
Company announced 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 (a) its audits of the financial
statements for years ended December 2009 and 2010; (b) its audit of the
effectiveness of the Company's internal control over financial
reporting as of December 31, 2009 and 2010; and (c) its review of the
Company's unaudited interim financial statements for the quarters from
September 30, 2009 through September 30, 2011.
The Pomerantz Firm, with offices in New York and Chicago, is
acknowledged as one of the premier firms in the areas of corporate,
securities, and antitrust class litigation. Founded by the late Abraham
L. Pomerantz, known as the dean of the class action bar, the Pomerantz
Firm pioneered the field of securities class actions. Today, more than
75 years later, the Pomerantz Firm continues in the tradition he
established, fighting for the rights of the victims of securities
fraud, breaches of fiduciary duty, and corporate misconduct. The Firm
has recovered numerous multimillion-dollar damages awards on behalf of
defrauded investors. See www.pomerantzlaw.com.
CONTACT: Rachelle R. Boyle
Pomerantz Haudek Grossman & Gross LLP