Auditors Beat Suit Over Agriculture Co.'s Stock Drop

Law360, New York (September 30, 2013, 2:22 PM EDT) -- A New York federal judge on Monday dismissed a proposed class action that accused two U.S. auditors of making misstatements about an ailing Chinese agriculture company's stock, ruling that the claims failed to properly allege scienter and loss causation.

Between November 2008 and May 2011, stock prices for China Organic Agriculture Inc. lost most of its value on the over-the-counter market. But instead of suing the company, which U.S. District Judge Jesse Furman called a corporate shell with no assets, lead plaintiff Jack Murrin sued China...
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