Pomerantz Law Firm Reminds Shareholders of China Medical Technologies, Inc. of Upcoming Deadline -- CMED

NEW YORK, Feb. 8, 2012 (GLOBE NEWSWIRE) -- Shareholders of China Medical Technologies, Inc. ("China Medical" or the "Company") CMED are reminded of the securities class action lawsuit filed against China Medical and certain of its officers. The class action (11 Civ. 9297), filed in the United States District Court, Southern District of New York is on behalf of all persons who purchased American Depository Shares ("ADS") of China Medical between February 7, 2007 and December 12, 2011, inclusive (the "Class Period"). This class action is brought under the Securities Exchange Act of 1934 and Rule 10b-5 against the Company and certain of its top officials.

If you are a shareholder who purchased China Medical securities during the Class Period, you have until February 17, 2012 to ask the Court to appoint you as lead plaintiff for the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Rachelle R. Boyle at rrboyle@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x350. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.

The Complaint alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company's acquisition of Beijing Bio-Ekon Biotechnology Co. Ltd. ("BBE") was from a third party seller connected to China Medical's Chairman, Wu Xiaodong; (2) the Company overpaid approximately $20 million to acquire BBE; (3) the Company's acquisition of BBE involved the use of fraudulent shell companies; (4) BBE was suffering operating losses prior to the acquisition; (5) the Company overstated accounts receivables in order to inflate sales and net income; (6) the Company's reported profit margins were inflated; and (7) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.

On December 6, 2011, Glaucus Research Group published an analyst report revealing, in part, that China Medical's Chief Executive Officer was embezzling money through sham acquisitions, the Company's reported profits and net income were inflated as they were inconsistent with comparable competitors, and the majority of the Company's account receivables were in excess of 120 days, indicating that its reported revenues were inflated. On this news, China Medical's shares declined $0.81 per share, or nearly 24%, to close on December 6, 2011 at $2.57 per share.

On December 13, 2011, China Medical disclosed that the Company intends to implement a debt restructuring plan to improve its balance sheet. On this news, China Medical's shares declined $0.43 per share, or nearly 13%, to close on December 13, 2011 at $2.87 per share.

The Pomerantz Firm, with offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.