Chinese Reverse Merger Co. Hyped 'Worthless' Stock: Suit

Law360, New York (August 3, 2011, 12:19 PM EDT) -- An investor hit Chinese drugmaker Jiangbo Pharmaceuticals Inc., which went public via reverse merger in 2007, with a proposed class action in Florida on Tuesday claiming its executives crowed about its finances in illegitimate public filings, enticing investors to buy “worthless” shares.

Tara Lewis' suit, filed in Miami federal court, names Wubo Cao, the Florida-incorporated company's founder, CEO Linxiang Jin, former CFO Elsa Sung and current interim CFO Jiling Sun as defendants.

The suit, which seeks damages for hundreds — possibly thousands — of investors, comes...
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