An investor in CGA shares filed a lawsuit on behalf of purchasers of China Green Agriculture, Inc common stock during the period from November 12, 2009 through September 1, 2010, against China Green Agriculture over alleged violations of Federal Securities Laws. Meanwhile an investigation on behalf of current long term investors in China Green Agriculture, Inc (NYSE:CGA) shares over possible breaches of fiduciary duty by certain directors and officers at China Green Agriculture was announced.

The investigation by a law firm on behalf of current long term investors in stock of China Green Agriculture, Inc (NYSE:CGA) concerns whether certain current and/or former officers and members of China Green Agricultures board of directors and executive officers can be held liable in connection with the alleged Securities Laws violations in the lawsuit by investors who purchased CGA stock between November 12, 2009 and September 1, 2010. According to the complaint filed in the US District Court for the District of Nevada the plaintiff alleges that China Green Agriculture, Inc violated federal securities laws by issuing between November 12, 2009 through September 1, 2010 misleading statements about its financial performance. The Complaint further alleges that China Green's financial statements filed with the U.S. Securities and Exchange Commission for fiscal 2010 are materially false and misleading because China Green Agricultures financial statements filed with Chinese authorities for the comparable periods are materially different. China Green Agricultures 12 month total revenue went from $15.18million reported on June 30, 2007 to $22.61million reported on June 30, 2008, to $35.21million reported on June 30, 2009, and to $52.09million reported on June 30, 2010. Its Net Income went from $6.92million reported on June 30, 2007 to $21.29million reported on June 30, 2010.
Shares of China Green Agriculture, Inc traded in 2006 at over $20 per share and increased in 2007 to over $23 per share. CGA shares dropped from $23 to under $12 per share in October 07. Since then shares of China Green Agriculture, Inc dropped to recently under $10 per share and closed last weeks trading at $8.44 per share.