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Tuesday, June 25, 2024 | Back issues
Courthouse News Service Courthouse News Service

First Chinese Firm on NYSE Settles With Class

RENO, Nev. (CN) - A federal judge ordered fertilizer company China Green Agriculture - the first Chinese company to be traded on the New York Stock Exchange - to pay $2.5 million to settle a shareholder class action.

China Green was listed on the New York Stock Exchange in 2009, under the CGA symbol. Shares closed at $1.27 on Friday.

Lead plaintiff Frederic Elliott sued CGA in October 2010, claiming its directors lied to investors about the company's profitability, its ability to maintain an annual gross profit margin of 55 percent to 60 percent, and other financial matters, which inflated the stock price.

China Green in 2014 agreed to settle the class action for $2.5 million.

On Thursday, U.S. District Judge Larry Hicks ordered China Green to deduct $40,712.32 in preparation fees for Epiq Class Action & Claims Solutions, plus taxes, from the $2.5 million settlement fund and proceed with the disbursement.

Epiq has been identifying and notifying qualifying class members to prepare for the disbursement.

Settlement amounts will be at least $10; class members whose shares of the settlement are less than $10 receive nothing, aside from a letter from Epiq explaining why they weren't paid.

Class members acquired common stock of China Green Agriculture between May 12, 2009 and Jan. 4, 2011.

After deducting fees and taxes and eliminating claimants who qualify for less than $10, Epiq will calculate the distribution amounts for the remaining class members and mail checks that are good for 90 days.

Six months later, Epiq will recalculate and redistribute any remaining funds to those class members who qualify for at least $10 upon a second distribution and who cashed their checks from the first disbursement. If a third distribution is necessary, that would occur at least six months after the second, and any funds remaining after that would go to a designated nonprofit organization.

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