Litigation
Oct. 22, 2011
Reverse merger suits hit snags
Shareholder lawsuits against Chinese companies involved in reverse mergers have exploded in the U.S. during the last year, but some unexpected obstacles are making the cases messier, and maybe more expensive than once thought.
Daily Journal Staff Writer
LOS ANGELES - When securities lawyer Frank Bottini read a market report last year saying RINO International Corp. had vastly overstated its revenues, he fired off a shareholder derivative complaint against the company.
The suit, filed last December, is one of a growing number of cases brought by shareholders against companies that have been swallowed by Chinese firms in so-called reverse mergers. It...
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