RINO International (NASDAQ:RINO) Seems to be Hiding Something

Not long after writing the headline above, it has become clear why RINO (NASDAQ:RINO) has been acting coy and avoiding conference calls lately, as it has been discovered a class action lawsuit has been filed against them in the United States District Court for the Central District of California on behalf of purchasers the securities of RINO.

Canaccord noticed the same thing, as far as the company seemingly hiding something, saying this:

"We continue to recommend selling the stock. The conference call originally scheduled last night was cancelled. RINO’s press release said that in consultation with the company’s chairman of the audit committee, it had decided to postpone the conference call, without specifying a scheduled date. This, in our view, may suggest that something indeed is wrong, and therefore, we continue to recommend investors SELL; our target price remains Under Review."

A press release said this:

"The complaint alleges that RINO and certain of its officers and directors with violations of federal securities laws. Specifically, it alleges that defendants knew or recklessly disregarded that their public statements concerning RINO’s business, operations and prospects were materially false and misleading.

"A research report released on November 10, 2010, questioning RINO’s customer business relationships, the accuracy of its financial reporting and financial results. Further, on November 15, 2010, the Company announced that earnings for the third quarter will be less than half of the earnings for the same period last year, and quarterly revenue fell approximately 17% from the same period one year ago. RINO has also reduced its revenue outlook for the year. The Company’s shares have declined approximately 57% from October 27, 2010."

RINO plummeted Wednesday, closing at $6.07, falling $1.08, or 15.10 percent.