After trading of WATG stock was halted an investigation on behalf of investors in shares of Wonder Auto Technology, Inc. (NASDAQ:WATG) over possible violations of Federal Securities Laws was announced.

The investigation by a law firm concerns on whether the Wonder Auto Technology, Inc. or others have violated federal securities laws by issuing false and misleading statements to the investing public.

Wonder Auto Technology, Inc. reported a substantial increase in its 12months Total Revenue between 2006 and 2009. Wonder Auto Technology, Inc. reported a 12months Total Revenue that almost tripped. Wonder Auto Technologys 12months Total Revenue increased from $72.15million in 2006 to $211.2millio in 2009. For the first three quarters in 2010 Wonder Auto Technology, Inc. reported a combined nine months Total Revenue that almost succeeded its 12months Total Revenue from 2009. Wonder Auto Technology, Inc. reported a combined nine months Total Revenue for the first three quarters of $210.91million.
Wonder Auto Technology also reported an increase in its Net Income from $0.71million in 2006, respectively a Net Loss of $3.75million in 2007 to a Net Income of $22.86million in 2009. For the first three quarters in 2010 Wonder Auto Technology reported a combined nine months Net Income that exceeded its 12months Net Income from 2009. For the first three quarters in 2010 Wonder Auto Technology, Inc. reported a combined nine months Net Income of $24.37million.

Shares of Wonder Auto Technology, Inc. (Public, NASDAQ:WATG) increased from as low as $1.02 in February 2006 to $12.59 per share in January 08. WATG shares fell during the end of 2008 and the beginning of 2009 to as low as $2.11 in Janaury 09. However WATG shares increased during 2009 to as high as almost $15 per share. Since then WATG shares fell to under $8 in the end of 2010.

Then May 6, 2011, The NASDAQ Stock Market announced that trading was halted in Wonder Auto Technology, Inc. (Nasdaq:WATG) for 'additional information requested' from Wonder Auto Technology at a last price of $5.42.

On May 12, 2011 Wonder Auto Technology, Inc. announced that its Audit Committee, with the assistance of professional advisors, has undertaken an internal investigation concerning certain investment and acquisition transactions.

Wonder Auto Technology, Inc said that as a result of the pending restatement of its financial statements for fiscal years 2008, 2009 and 2010, and for the quarters ended March 31, June 30 and September 30, 2009 and 2010, and the investigation, Wonder Auto Technology, Inc has not filed its Form 10-K for the fiscal year ended December 31, 2010 and does not expect to be able to file its Form 10-Q for the quarter ended March 31, 2011 by the filing deadline of May 10, 2011.