No Investor Fraud in Chinese Stock Offering, Underwriters Say

Law360, Los Angeles (July 8, 2013, 9:59 PM EDT) -- Underwriters of a $40 million offering of shares in China's Yuhe International Inc. urged a California federal judge on Monday to toss a putative investor class action, saying they made no material misstatement about the company's chicken-farming operations in a prospectus.

The underwriters — Roth Capital Partners LLC, Brean Murray Carret & Co. LLC, and Global Hunter Securities LLC — argued they could not be liable for misleading investors because there was no material difference between Yuhe's “expertised” annual audited financial statement for the period ended...
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