The Vultures Are Circling Over Bodisen Biotech

Nov.16.06 | About: BioShares Biotechnology (BBC)

As predicted, the window of class action lawsuits has opened against organic fertilizer maker Bodisen Biotech (NASDAQ:BBC).

On Wednesday, in their ongoing attempt to “champion the rights of investors nationwide,” New York-based Rosen Law firm filed a class action against Bodisen Biotech and certain of its officers and directors, as well as Benjamin Way and New York Global Group for violations of federal securities laws. The Complaint alleges that the Company failed to disclose that it was paying New York Global to issue positive research reports on the Company. As a result of the alleged fraud, Rosen charges that the value of the Bodisen’s stock has declined and damaged investors.

The Law Offices of Howard G. Smith announced that it, too, has filed a securities class action lawsuit (on behalf of shareholders who purchased the common stock of Bodisen Biotech, too).
Bodisen vultures
Their complaint alleges that defendants violated federal securities laws by issuing a series of material misrepresentations to the market during the Class Period (between August 26, 2005 and November 14, 2006) concerning the Company's business, prospects and financial performance, thereby artificially inflating the price of Bodisen securities.

The 10Q Detective spotted this joke online the other day: "What's the difference between a lawyer and a vulture? The lawyer gets frequent flyer miles."

And the self-professed “champion for victims of corporate wrongdoing,” Kahn Gauthier Swick, LLC [KGS], announced that it has commenced an investigation into Bodisen Biotech to determine whether it has violated federal securities laws by issuing false and misleading statements to its shareholders.

According to KGS’ website, one of its founders was Wendell Gauthier (1943 – 2001), a nationally prominent lawyer most responsible for the national tobacco settlements in excess of $200 billion, and numerous other recoveries for thousands of plaintiffs in excess of $3 billion.

It is no joke – the vultures are already flying over Bodisen’s body, which is not even dead yet!