Fuqi International Explained

Fuqi International, Inc.
Type:	Public
Fate:	Defunct
Location City:	Shenzhen
Location Country:	China

Fuqi International (formerly traded as NASDAQ:) is a designer of precious metal (gold and platinum) jewelry for the luxury goods market in China. It also manufactures jewelry items that contain diamonds and other precious stones on a custom-order basis. Fuqi is a Delaware corporation with its principal executive office located in Shenzhen, China. Fuqi operates through its wholly owned subsidiary, Fuqi International Holdings Co., Ltd., a British Virgin Islands corporation and its wholly owned subsidiary, Shenzhen Fuqi Jewelry Co., Ltd., a company established under the laws of China.^[1]

History

Fuqi was founded in 2001 and had its IPO in 2007.^[2] As of December 31, 2008 (the date of its last 10-K SEC filing), Fuqi had 69 jewelry retail counters and stores in China and approximately 950 employees. 97% of its revenue came from wholesale jewelry sales.

On March 29, 2011, Fuqi was de-listed from NASDAQ and has been trading on OTC Pink since.^[3]

Class action lawsuit

On March 17, 2010, FUQI's shares declined more than 35% overnight,^[4] following an announcement of the company's accounting errors and internal control deficiencies, to close at $11.90 per share, on trading volume 20 times the usual.

Several class action lawsuits were filed in April,^{[5] [6]} with a consolidated class action complaint filed on Feb 15, 2011, by ABRAHAM, FRUCHTER & TWERSICY, LLP.^[7]

Awards

• "5 Stocks Approaching Greatness" - Motley Fool, March 9, 2010^[8]
• “Chinese Famous Brand”, by China Light Product Quality Assurance Center; “Famous Brand in the China Jewelry Industry”, by Gems & Jewelry Trade Association of China; one of the “Shenzhen 300 enterprises with Ultimate Growth”, by Shenzhen City Enterprises Evaluation Association; “China Top Brand” by General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China, October 2007

External links

• • SEC filings
• Class action case

References

1. Web site: FORM 10-K. U.S. Securities and Exchange Commission. 2009-03-31.
2. Web site: Company Profile . https://web.archive.org/web/20130118000441/http://fuqi.irpage.net/eng/company.php . 2013-01-18 . dead .
3. Web site: Fuqi International, Inc. Announces NASDAQ Determination To Delist Common Stock; Company Eligible To Trade On Pink Sheets . . https://archive.today/20130201070137/http://www.reuters.com/finance/stocks/FUQI.PK/key-developments/article/2121446 . 1 February 2013 . dead .
4. Web site: Historical prices 2010 March.
5. Web site: Shareholder Class Action Filed Against Fuqi International, Inc. by the Law Firm of Barroway Topaz Kessler Meltzer & Check, LLP. Barroway Topaz Kessler Meltzer & Check, LLP. April 8, 2010.
6. Web site: Fuqi International, Inc. Named By Weiss & Lurie In Class Action . . https://web.archive.org/web/20120102095614/http://www.weisslurie.com/news_events/news/fuqi_international_inc_named_by_weiss_lurie_in_class_action . 2 January 2012 . April 8, 2010 . dead .
7. Web site: MELA Sciences, Inc.. Securities class action clearinghouse. Stanford Law School. 18 November 2012. https://web.archive.org/web/20111117112742/http://securities.stanford.edu/1044/FUQI00_01/. 17 November 2011. dead.
8. Web site: Duprey. Rich. 5 Stocks Approaching Greatness. The Motley Fool. March 9, 2010.