AgFeed Industries, Inc. | Investor Fraud, Investment Losses | Fraud Issues: formula based analysis flawed, Allowances undervalued, Accounts were overvalued, debts undervalued, causing reported asset values overstated, expenses understated, exaggerated its market edge, illusion of heightened profitability, Stock traded at artificially inflated prices
Gilman Law LLP, a leading securities law firm, is now accepting claims for lawsuits on behalf of AgFeed Industries, Inc. shareholders. The firm is actively investigating shareholder claims that AgFeed, and certain of its officers and directors, violated the Securities Exchange Act of 1934 by issuing potentially misleading statements regarding its business and operations. The firm is currently offering free legal evaluations to all Florida AgFeed investors, including those in the Naples, Orlando, Miami, Jacksonville and Tampa areas.
For over 30 years, Gilman Law has represented investors in all major aspects of securities fraud litigation, including stock manipulation, securities fraud, and shareholder rights violations. The firm’s is offering free legal consultations to investors. If you purchased or otherwise acquired shares of AgFeed (NASDAQ: FEED), during the period between March 16, 2009 and August 2, 2011, and either lost money on the transaction or still hold the shares, you must contact Gilman Law LLP no later than December 19, 2011 in order to exercise your PSLRA legal rights against AgFeed. You may still have other legal options even after the date. Please contact us by either filling out the form or calling
AgFeed Class Action Lawsuit Allegations
AgFeed Industries is an international agribusiness with operations in the U.S. and China. On August 2, 2011, AgFeed announced preliminary financial results for the second quarter of 2011 that were well below expectations. At the same time, the Company disclosed that it 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 (SEC) that it would withdraw the Registration Statement for its animal nutrition business.
Since then, a class action lawsuit has been filed on behalf of AgFeed investors in the United States District Court for the Middle District of Tennessee.
The complaint alleges that AgFeed and certain of its officers and directors failed to disclose:
The Company’s collection efforts and credit dealings with its animal nutrition customers were not working because the “formula based analysis” AgFeed relied on in determining accounts receivable and reserves for doubtful accounts was flawed;
Allowances for doubtful accounts were undervalued;
Accounts were overvalued and bad debts were undervalued, causing reported asset values to be overstated and expenses to be understated;
As a result, AgFeed exaggerated its market edge creating an illusion of heightened profitability.
The AgFeed class action lawsuit alleges that the Defendants’ false statements caused AgFeed’s stock to trade at artificially inflated prices during the Class Period.
Legal Help for AgFeed Shareholders
Gilman Law has extensive experience representing both individual and institutional investors in securities class action suits, and has recovered over a billion dollars for its clients. We are ready to assist investors who have sustained losses as a result of AgFeed’s fraudulent practices. For a free evaluation of your case or to obtain additional information, please fill out the form on the left or CALL TOLL FREE (888) 252-0048.
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