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Harwood Feffer LLP (
www.hfesq.com) announces that a class action suit was filed on October 18, 2011 in the United States District Court for the Middle District of Tennessee against AgFeed Industries, Inc. (“AgFeed” or the “Company”) (NASDAQ: FEED) on behalf of all purchasers of AgFeed securities between March 16, 2009 and August 2, 2011 (the “Class Period”).
On August 2, 2011 AgFeed disclosed that it expected to post a loss of more than $17 million due to an increase in allowances for its bad-debt provision and that it needed to take a $9.2 million charge for the collection of outstanding receivables in its animal nutrition business. The Company stock, which closed at $1.99 per share on August 1, 2011, plummeted to $1.02 per share by August 8, 2011. Then, on September 29, 2011, the Company disclosed that it had formed a special committee to investigate accounting related to the Company’s Chinese farm assets and the validity and collectability of certain accounts receivables. AgFeed stock, which had closed at $0.69 per share on September 28, 2011, rapidly lost 30% of its value to close at $0.40 per share on October 1, 2011.
The Tennessee suit alleges that the Company made a series of material misrepresentations to the market which had the effect of artificially inflating the market price and failed to disclose material adverse facts about AgFeed’s business in violation of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5.
If you purchased AgFeed securities during the Class Period, you have until December 19, 2011 to ask the Court to appoint you lead plaintiff. If you wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact: