An investigation for investors in OTC:AUTCF, formerly NASDAQ:AUTC, shares over potential Violations of Federal Securities Laws by AutoChina International Limited and certain of its officers and directors at in connection with allegations over possible stock manipulation was announced.
Investors who purchased shares of AutoChina International Limited (OTC:AUTCF, formerly NASDAQ:AUTC), have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 – 1554.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of AutoChina International Limited (OTC:AUTCF)) concerning whether a series of statements by the Company regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
AutoChina International Limited reported that its annual Revenue rose from $36.30million in 2008 to $598.09million in 2011 and its Net Income rose from $8.04million in 2008, respectively a Net Loss of $53.19million in 2009, to a Net Income of $26.13million in 2011.
Shares of AutoChina International Limited (formerly NASDAQ:AUTC) rose from as low as $16.05 per share in December 09 to as high as $44.49 per share in March 2010 and traded in March 2011 as high as $38.56.
Then on June 30, 2011, AutoChina International disclosed that the Company is being investigated by the U.S. Securities Exchange and Commission and that it expects to restate its previously issued financial statements for the year ended December 31, 2009, and subsequent quarterly periods to recognize a derivative liability relating to the Earn-out Share Provision (“Earn-out”), which was part of its initial business combination in 2009.
NASDAQ: AUTC stock fell from over $29 in June 2011 to $18 during July 1, 2011.
Then on April 11, 2012, the U.S. Securities and Exchange Commission (“SEC”) filed a complaint in the U.S. District Court for the District of Massachusetts against AutoChina International Limited and certain individuals over alleged violations of the securities laws. The SEC alleged that the AutoChina International Limited defendants conducted a market manipulation scheme to create the false appearance of a liquid and active market for AutoChina International Limited’s stock in order to obtain financing.
According to the SEC’s complaint, beginning in October 2010 until February 2012, the defendants and others deposited millions into brokerage accounts based in the United States and engaged in hundreds of allegedly fraudulent trades.
The complaint alleges that prior to opening these brokerage accounts, the average trading volume of AutoChina’s stock was approximately 18,000 shares, but in the three months after these accounts were opened, the daily trading volume increased to 139,000 shares. During the period of November 1, 2010 through January 31, 2011, trading by the defendants and related accounts generated as much as 70% of AutoChina’s trading volume.
Following the news of the lawsuit by the SEC, AutoChina International Ldt. said it believes that it is without merit and that it intends to defend against the claims vigorously.
Shares of AutoChina International Limited (OTC:AUTCF) dropped from $26 on February 13, 2012 to $15 per share on April 12, 2012.
Those who purchased shares of AutoChina International Limited (OTC:AUTCF) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North – Suite 423
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