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MILBERG LLP > Did AutoChina International Violate Federal Securities Laws?

Did AutoChina International Violate Federal Securities Laws?

Free AutoChina Claim Evaluation

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AutoChina International Limited (NASDAQ: AUTC) said in a June 30, 2011 filing that it is being investigated by the Securities Exchange and Commission (SEC) and that it expects to restate its previously issued financial statements for the year ended December 31, 2009, and subsequent quarterly periods to account for a derivative liability.  Shares of AutoChina fell 12.54% to $25.53 per share after investors digested the announcement.

The China-based commercial vehicle lease company said it had identified a material weakness in its internal controls over financial reporting during its year-end process.  AutoChina will restate results to recognize a derivative liability relating to the earn-out share provision, which was part of its initial business combination in 2009.  The reclassification of the earn-out and its effects may result in material changes to AutoChina’s financial statements, Reuters reported.

AutoChina’s announcement comes at a time when regulators are paying close attention to Chinese companies listed on U.S. exchanges.  Numerous Chinese companies have seen their stocks lose value as a result of restatements, federal investigations, executive resignations, and negative research reports.  Several class action lawsuits have been filed against China-based companies such as A-Power Energy, Yuhe International, Wonder Auto Technology, and  Yongye International.

If you purchased shares of AutoChina International Limited and would like more information regarding this investigation, please fill out the form on the right or contact the following attorney:

Andrei Rado, Esq.
Milberg LLP
One Pennsylvania Plaza, 48th Fl.
New York, NY 10119-0165
Phone number: (800) 320-5081
Email: arado@milberg.com

Milberg LLP has been representing individual and institutional investors for more than four decades and serves as lead counsel in federal and state courts throughout the United States.  Please visit the Milberg website for more information about the Firm.

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