China Shenghuo Pharmaceutical Holdings, Inc. designs, develops, markets, sells, and exports pharmaceutical, nutritional supplement, and cosmetic products.
The company announced a delay in filing the 2008 Q2 10-Q on 20 Aug 2008, stating that it is “due to a pending internal investigation … regarding errors in the accounting” and that financial statements for 2007 and Q1 2008 should not be relied upon.
Several law firms filed class actions against the company for “issuing numerous materially false and misleading statements and violated Generally Accepted Accounting Principles which caused CSP’s securities to trade at artificially inflated prices.” A lawsuit was filed against the company and was later settled.
One of the directors, Gene Michael Bennett, was accused to have falsified job experience in accounting and a law degree on his resume.
Business Wire: Cohen, Milstein, Hausfel & Toll, P.L.L.C. Files Class Action, 22 Sep 2008.
Casemine: Varghese v. China Shenghuo Pharmaceutical, 9 Dec 2009
Bloomberg: China Director in U.S. Says Never Mind When Resume Proves False, 30 Mar 2011