SEC Sues China Sky Over $20M In Phony Sales

Law360, New York (September 5, 2012, 4:58 PM EDT) -- The U.S. Securities and Exchange Commission on Tuesday hit health and beauty product company China Sky One Medical Inc. with allegations that it inflated its financial results in 2007 and 2008 through nearly $20 million in fabricated sales.

The lawsuit is the latest example of U.S.-listed Chinese companies that have faced scrutiny over alleged misrepresentations regarding their businesses and finances. The U.S. government has filed lawsuits against SinoTech Ltd. and Xinhua Finance Ltd. Auditors and short-sellers have also targeted these businesses.

The SEC accuses China Sky...
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