KUNMING, China, March 22, 2011 /PRNewswire-Asia-FirstCall/ --
China Shenghuo Pharmaceutical Holdings, Inc. (China Shenghuo)
(AMEX: KUN) announced today the final approval by the court of a
settlement agreement resolving and dismissing all claims asserted
against the company in the consolidated class action lawsuit,
Varghese, et al v. China Shenghuo Pharmaceutical Holdings, Inc., et
al. The substantive allegations of the amended consolidated
complaint have previously been summarized in SEC disclosures by
China Shenghuo.
China Shenghuo is contributing US $200,000 towards a total settlement fund of
$600,000.
In settling and resolving all claims on a class basis, China
Shenghuo has not admitted any wrongdoing and the settlement avoids
the costs of continued litigation.
About China Shenghuo
Founded in 1995, China Shenghuo is a specialty pharmaceutical
company that focuses on the research, development, manufacture and
marketing of Sanchi-based medicinal and pharmaceutical, nutritional
supplement and cosmetic products. Through its subsidiary, Kunming
Shenghuo Pharmaceutical (Group) Co., Ltd., it owns thirty SFDA
(State Food and Drug Administration) approved medicines, including
the flagship product Xuesaitong Soft Capsules, which is currently
being listed in the 2010 Provincial Insurance Catalogue of sixteen
provinces and remains to be listed in the 2009 Provincial Insurance
Catalogue of three provinces around China. At present, China Shenghuo incorporates
a sales network of agencies and representatives throughout
China, which markets Sanchi-based
traditional Chinese medicine to hospitals and drug stores as
prescription and OTC drugs primarily for the treatment of
cardiovascular, cerebrovascular and peptic ulcer disease. The
Company also exports medicinal products to Asian countries such as
Indonesia, Singapore, Japan, Malaysia, and Thailand and to European countries such as the
United Kingdom, Tajikistan, Russia and Kyrgyzstan. For more information, please visit
http://www.shenghuo.com.cn.
Safe Harbor Statement
This press release may contain certain "forward-looking
statements," as defined in the United
States Private Securities Litigation Reform Act of 1995,
that involve a number of risks and uncertainties. There can be no
assurance that such statements will prove to be accurate, and the
actual results and future events could differ materially from
management's current expectations. Such factors include, but are
not limited to, risks of litigation and governmental or other
regulatory proceedings arising out of or related to any of the
matters described in recent press releases, including arising out
of the restatement of the Company's financial statements; the
Company's ability to refinance or repay loans received; the
Company's uncertain business condition; the Company's continuing
ability to satisfy any requirements which may be prescribed by the
Exchange for continued listing on the Exchange; risks arising from
potential weaknesses or deficiencies in the Company's internal
controls over financial reporting; the Company's reliance on one
supplier for Sanchi; the possible effect of adverse publicity on
the Company's business, including possible contract cancellation;
the Company's ability to develop and market new products; the
Company's ability to establish and maintain a strong brand; the
Company's continued ability to obtain and maintain all
certificates, permits and licenses required to open and operate
retail specialty counters to offer its cosmetic products and
conduct business in China;
protection of the Company's intellectual property rights; market
acceptance of the Company's products; changes in the laws of
the People's Republic of China
that affect the Company's operations; cost to the Company of
complying with current and future governmental regulations; the
impact of any changes in governmental regulations on the Company's
operations; general economic conditions; and other factors detailed
from time to time in the Company's filings with the United States
Securities and Exchange Commission and other regulatory
authorities. The Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
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Company
Contact:
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China Shenghuo
Pharmaceutical Holdings, Inc.
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Ms. Shujuan
Wang
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Secretary of Board of
Directors
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Phone: +86-871-728-2698
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Investor
Relations Contact:
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The Trout Group
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Mark Xu
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Phone: +86-158-2199-6861
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SOURCE China Shenghuo Pharmaceutical Holdings, Inc.