An investor in RINO Intl. shares filed a lawsuit on behalf of investors who purchased the common stock of RINO International Corporation during the period from March 31, 2009 to November 11, 2010 against RINO International Corporation over alleged violations of Federal Securities Laws. Meanwhile an investigation on behalf of current long term investors of RINO International Corporation (NASDAQ:RINO), including those who purchased (also) prior to March 2009 RINO shares and presently continue to hold those shares was announced.

The investigation by a law firm on behalf of current long term investors in stock of RINO International Corporation (NASDAQ:RINO) concerns whether certain current and/or former officers and members of RINO International Corp. 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 RINO stock between March 31, 2009 to November 11, 2010. According to the complaint filed in the U.S. District Court for the Central District of California the plaintiff alleges that RINO International Corporation violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by misrepresenting March 31, 2009 and November 11, 2010 RINO Internationals true financial performance.
RINO Intls 12month Total Revenue went from $10.76million in 2006 to $192.64million in 2009. Its Net Income went from $3.15million in 2006 to $56.39million in 2009. For the first two quarters in 2010 RINO International Corp reported $47.86million, respectively $65.38million in quarterly Total Revenue with $20.44million, respectively $18.66million Net Income.
Shares of RINO International Corporation (Public, NASDAQ:RINO) traded in 2009 as high as $32.35 per share. In 2010 RINO shares began to lose value and traded in May at $11.87 per share or 65% below its 2009 high. Over the past 6months RINO shares were able to regain some value and traded on October 27 at $19.20 per share.
Then on November 10 a research report questioned RINO Internationals customer relationships and the accuracy of the financial results of RINO International Corp's financial statements.
The plaintiff alleges that contrary to RINO Internationals annual report filed with the SEC for fiscal 2009 which reported $193 million of revenue, the Companys annual report filed with the Chinese authorities reported only $11 million of revenue for 2009. This discrepancy, along with other accounting inconsistencies, and questionable transactions between RINO International Corp and its management, has raised red flags and prompted an internal review, so the plaintiff. The Complaint asserts that when the market learned of this adverse information, the price of RINO stock dropped damaging investors.

Shares of RINO International Corporation (NASDAQ:RINO) fell from $16.27 on November 9 to $10.57 per share on November 11. Rino continued to decline and trading was halted after RINO shares tumbled 17% on Nov. 17 after Rino International (RINO) canceled its Q3 conference call. Then, on November 18, 2010, RINO said in an SEC filing that its board concluded that previously issued financial statements for its fiscal years ended December 31, 2008 and 2009, and previously issued financial statements for the periods March 31, 2010, June 30, 2010 and September 30, 2010, should no longer be relied on because the Company did not enter into two contracts for which it has reported revenue for during the 2008 and 2009 fiscal years.