October 25, 2010
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: China Green Agriculture (NYSE: CGA ) shares fell 12% in trading late Monday.
So what: Today, law firm Brower Piven filed a lawsuit on behalf of purchasers of China Green Agriculture stock. This follows news last week that another firm, Hagens Berman, was investigating allegations that the company made "false and misleading statement to the US SEC."
Now what: Allegations center around material differences between statements filed with Chinese and U.S. authorities. When allegations like this start flying around, it’s never good for shareholders. This Fool doesn’t like to panic-sell, but I would stay away at least until these allegations get cleared up ... which could be a long time.
Interested in more info on China Green Agriculture? Add it to your watchlist.