A report concerning alleged self-dealing transactions and a more than 35% stock price drop within a few trading days prompted an investigation on behalf of investors in shares of Yongye International, Inc. (NASDAQ:YONG) over possible violations of Federal Securities Laws.


The investigation by a law firm potential securities fraud claims against Yongye International, Inc. (NASDAQ: YONG) resulting from allegations that Yongye Intl Inc. may have issued materially misleading financial statements and business information to the investing public.

Yongye International, Inc., formerly Yongye Biotechnology International, Inc., incorporated on December 12, 2006, through its primary operating subsidiary, Yongye Nongfeng, is engaged in the manufacturing, research and development and sale of fulvic acid-based liquid and powder nutrient compounds used in the agriculture industry in the Peoples Republic of China (PRC).

Yongye Intl reported a more then sixteen times annual Total Revenue increase over the past four years. Yongye Internationals 12months Total Revenue surged from $13.14million for 2007 to $214.09million for 2010. It reported that its Net Income rose more than ten times over the same time frame, from $4.36million in 2007 to $48.44million in 2010.

Shares of Yongye International, Inc. traded during 2009 as high as $11.59 per share.

Then on May 18, 2011, an equity analyst at Absaroka Capital Management issued a report alleging that Yongye International Inc. had engaged in undisclosed self-dealing transactions through its purchase of a $34.4 million lignite coal project, as well as through more than $25 million of purchases from its two main suppliers. The analyst also reported that Yongye Intl Inc. had falsely claimed in a television promotional campaign that its main product -- Shengmingsu - was developed by a team of scientists at Stanford University. The report contained a letter from Stanford denying that claim.

NASDAQ: YONG stock fell from $5.35 in the beginning of May to $3.32 during May 19.