Cohen Milstein Sellers & Toll PLLC Announces Investigation Of AgFeed Industries, Inc.
Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether AgFeed Industries, Inc. (“AgFeed” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
Class action lawsuits have been filed in the U.S. District Courts for the Middle District of Tennessee and the District of Colorado by other law firms on behalf of purchasers of the common stock of AgFeed Industries, Inc. (NASDAQ: FEED) between March 12, 2008 and September 29, 2011, inclusive (the “Class Period”).
AgFeed Industries is an international agribusiness with operations in the U.S. and China. The Company has two business lines: (1) animal nutrition; and (2) hog breeding and production.
The complaints allege that AgFeed and certain of its officers and/or directors (“Defendants”) misrepresented and/or failed to disclose that: (1) AgFeed relied on a flawed analysis to account for its debt levels; (2) AgFeed’s allowances for doubtful accounts were highly undervalued; (3) AgFeed's accounts receivable were overvalued and its bad debts were undervalued, causing reported asset values to be overstated and expenses to be understated; and (4) AgFeed failed to properly account for its acquisition of Chinese farm assets for its hog production business in 2007 and 2008.After the market close on September 29, 2011, AgFeed announced that it had established a special committee “ to investigate the accounting relating to certain of the Company’s Chinese farm assets (acquired during 2007 and 2008) used in its hog production business, as well as the validity and collectability of certain of the Company’s accounts receivables relating to its animal nutrition business in China and any other issues that may arise during the course of the investigation.” According to the complaints, the special committee engaged Latham & Watkins LLP to serve as its independent counsel. The Company further stated that it does not intend to provide further comment until after the special committee concludes its investigation. The price of AgFeed shares fell from $0.65 to $0.52 on September 30 and to $0.40 the next trading day, October 3. Cohen Milstein encourages all investors who purchased AgFeed common stock between March 12, 2008 and September 29, 2011 or former employees with information concerning this matter to contact the firm.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV