Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Jeff Feyko, Individually and On Behalf of All Others Similarly Situated v. Yuhe International Inc.

March 2, 2012

JEFF FEYKO, INDIVIDUALLY AND ON BEHALF OF ALL OTHERS SIMILARLY SITUATED, PLAINTIFFS,
v.
YUHE INTERNATIONAL INC., GAO ZHENTAO, AND HU GANG, DEFENDANTS.



The opinion of the court was delivered by: Dean D. Pregerson United States District Judge

O

ORDER RE MOTIONS TO APPOINT LEAD PLAINTIFF AND CLASS COUNSEL [Dkt. Nos. 16, 21,29, 52]

This matter comes before the court on Plaintiffs' motion for appointment of lead plaintiff and class counsel. After reviewing the materials submitted by MRMP-Managers LLC*fn1 ("MRMP") and aAd Partners LP ("aAd Partners") and considering oral argument, the court appoints aAd Partners LP ("aAd Partners") as Lead Plaintiff and Gold Bennett Cera & Sidener LLP as Lead Counsel.

I. BACKGROUND

YUHE INTERNATIONAL, Inc. ("Yuhe") is a Nevada Corporation with its principal executive offices in the People's Republic of China. (aAd Partners Br. p.3:5-6.) Yuhe supplies day-old broiler chickens to broiler farms and integrated chicken companies that engage in the breeding, hatching, farming, slaughtering, and processing of broilers. Id. at p.3:6-9. Yuhe purchases breeding stocks from primary breeder farms, raises the stock for hatching eggs, and sells live day-old broilers. (MRMP Opp. p.1:10-13.)

The Plaintiffs, buyers and sellers of Yuhe stocks, allege that Yuhe and certain of its officers and directors violated the Securities and Exchange Act of 1934. Specifically, Plaintiffs contend that between December 31, 2009 and June, 17, 2011*fn2 Yuhe's officers and directors issued materially false and misleading information to investors relating to the purported acquisition of thirteen breeder farms and the potential diversion and misappropriation of funds by Yuhe's Chairman and CEO -- Defendant Gao Zhentao. (aAd Partners Br. p.3:17-22.)

In mid-June 2011, a research report published on the internet alleged that Yuhe had misrepresented the details regarding the acquisition of the breeder farms and that Defendant Gao Zhentao may have misappropriated the funds associated with the purchase. (MRMP

p.2:5-10.) Once this information was disseminated, Yuhe's stock dropped by 52%. (Id. at p.2:10-12.) The next day, Yuhe hosted a conference call during which it denied any misappropriation, but admitted to deliberately failing to make truthful public disclosures to prevent the company's stock from being affected. (aAd Partners Br. p.3:25-28.) Following the conference call, Yuhe's stock fell another 38%.

At the end of July, 2011, NASDAQ officially de-listed Yuhe's shares.

Plaintiff aAd Partners contends it was damaged by Defendants' conduct in the amount of $4,962,273.88. MRMP argues it lost $459,290.21 due to Defendants' conduct.

II. DISCUSSION

A. Lead Plaintiff

"Not more than 20 days after the complaint is filed the plaintiff or plaintiffs shall cause to be published, in a widely circulated national business-oriented publication or wire service, a notice advising members of the purported plaintiff class-- (I) of the pendency of the action, the claims asserted therein, and the purported class period; and (II) that, not later than 60 days after the date on which the notice is published, any member of the purported class may move the court to serve as lead plaintiff of the purported class." 15 U.S.C. § 78u-4(a)(3)(A)(i).

Under the Private Securities Litigation Reform Act ("PSLRA"), the court "shall appoint as lead plaintiff the member or members of the purported plaintiff class that the court determines to be most capable of adequately representing the ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.