Rigrodsky & Long, P.A. Announces Class Action Lawsuit Against AgFeed Industries, Inc.
Rigrodsky & Long, P.A. announces that a class action lawsuit has been filed in the United States District Court for the Middle District of Tennessee on behalf of all persons or entities who purchased or otherwise acquired the stock of AgFeed Industries, Inc. (“AgFeed” or the “Company”) (Nasdaq: FEED) between March 16, 2009 and August 2, 2011, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 (the “Complaint”).
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Noah R. Wortman, Case Development Director of Rigrodsky & Long, P.A., 919 North Market Street, Suite 980 Wilmington, Delaware, 19801 at (888) 969-4242, by e-mail to firstname.lastname@example.org, or at: http://investigations.rigrodskylong.com/agfeedindustriesinc-feed/.
According to its website, AgFeed is an international agri-business with operations in the United State and China. Founded in 1995 with a focus on animal nutrition, today AgFeed is made up of three distinct operating units: Animal Nutrition, Hog Production and Harvesting.
The Complaint names AgFeed and certain of the Company’s current and former executives and officers as defendants. The Complaint alleges that during the Class Period, AgFeed made materially false and misleading statements regarding the Company’s financial health and in particular relating to its Animal Nutrition business. As a result, AgFeed’s stock price traded at artificially inflated prices during the Class Period.Specifically, the Complaint alleges that officials at the Company failed to disclose to investors material adverse facts that: (1) AgFeed’s collection efforts and credit dealings with its animal nutrition customers were not working because the “formula based analysis” the Company relied upon in determining accounts receivable and reserves for doubtful accounts was flawed; (2) allowances for doubtful accounts were materially undervalued; (3) accounts were overvalued and bad debts were undervalued, causing reported asset values to be overstated and expenses to be understated; and (4) AgFeed exaggerated its market edge as the combination of overstated assets and understated expenses resulted in creating an illusion of heightened profitability and failed to provide a “long-term picture” of AgFeed’s value.
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