China Automotive Systems
Robbins Umeda LLP Announces an Investigation of China Automotive Systems, Inc.
Robbins Umeda LLP, a shareholder rights litigation firm, has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at China Automotive Systems, Inc. (NASDAQ: CAAS). China Automotive manufactures and sells power steering systems and other component parts for the automotive industry in the Peoples Republic of China. The Company was founded in 2003. It is incorporated in Delaware and headquartered in Jing Zhou City, the Peoples Republic of China.
On March 17, 2011, China Automotive announced that it would delay filing its annual financial statement and would need to restate its previously issued financial statements for the fiscal year 2009 and the first three quarters of fiscal year 2010 due to errors in its accounting treatment for the company’s convertible notes issued on February 15, 2008. The audit committee of the board of directors of China Automotive has said that these statements should no longer be relied upon. On March 18, 2011, the company announced that it received a notification letter from NASDAQ, stating that the company is no longer in compliance with NASDAQ Marketplace rules, which require timely filing of U.S. Securities and Exchange Commission periodic reports. China Automotive has 60 calendar days, or until May 16, 2011, to submit a plan to NASDAQ to regain compliance.
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