Rigrodsky & Long, P.A. announces that it has filed a class action lawsuit 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 12, 2008 and September 29, 2011, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 (the “Complaint”). The case is entitled June W. Dougherty v. AgFeed Industries, Inc., C.A. No. 3:11-CV-01046 (M.D. Tenn.). If you wish to view a copy of the Complaint, 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 email@example.com, or at: http://www.rigrodskylong.com/news/AgFeed-Industries-Inc-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 alleges that during the Class Period, certain directors and officers of AgFeed issued materially false and misleading statements, and failed to disclose material adverse facts, regarding the Company’s financial condition, operations and prospects. Specifically, the Complaint alleges that defendants knew and/or recklessly failed to disclose that: AgFeed had improperly accounted for the acquisition of certain farm assets in its hog production business that it had acquired in 2007 and 2008; it had failed to properly monitor and/or assess the creditworthiness of certain customers so that various accounts receivable were uncollectible; the Company’s doubtful accounts allowances were undervalued; and the Company lacked adequate internal financial controls. This, in turn, caused the Company to overstate asset values and understate expenses, which caused the price of AgFeed common stock to be artificially inflated during the Class Period.
On August 2, 2011, the Company announced its preliminary financial results for the second quarter of 2011, reporting that the Company was performing well below expectations and that AgFeed expected to post a loss of $17 million, as it added $5 million in allowances for its bad debt expenses. Additionally, on August 9, 2011, AgFeed disclosed to the U.S. Securities and Exchange Commission the true nature of its finances and the Company’s decision to withdraw the Registration Statement for its Animal Nutrition business.Subsequently, on September 29, 2011, AgFeed announced that its Board of Directors 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. The Complaint alleges that as the true financial condition of the Company was disclosed following the foregoing announcement, the price of AgFeed common stock dropped significantly, damaging the plaintiff and other members of the Class. If you wish to serve as lead plaintiff, you must move the Court no later than December 19, 2011. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Rigrodsky & Long, P.A., with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.Attorney advertising. Prior results do not guarantee a similar outcome.