Yuhe International, Inc.
Robbins Umeda LLP Announces an Investigation of Yuhe International, 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 Yuhe International, Inc. (NASDAQ: YUII). Yuhe supplies day-old chickens raised for meat production or broilers in the People’s Republic of China, and engages in the production and sale of feed stock. The company was founded in 1996 and is headquartered in Weifang, Shandong province, China.
Robbins Umeda LLP’s investigation focuses on whether Yuhe’s directors and officers made improper statements concerning the company’s financial condition and business prospects. On June 23, 2011, Yuhe filed an 8-K with the U.S. Securities and Exchange Commission announcing the resignation of its independent auditor. The same 8-K also stated that the auditor resigned due to “management’s misrepresentation and failure to disclose material facts surrounding certain acquisition transactions and off balance sheet related party transactions.” Upon resignation, the auditor also warned that financial statements provided by the company for the year ended December 31, 2010, should no longer be relied upon.
Since these allegations of Yuhe’s financial incongruities and accounting improprieties have surfaced, the company’s stock price has plummeted to record lows. After trading as high as $10.41 per share in November 2010, the company’s stock closed at just $1.21 on June 17, 2011. Additionally, on June 17, 2011, the NASDAQ announced that it would indefinitely suspend trading of the company’s stock on its exchange, pending an investigation into financial statements released by the company.
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