| Company: | AgFeed Industries, Inc |
| Ticker Symbol: | FEED |
| Class Period: | Mar-16-09 to Aug-2-11 |
| Date Filed: | Oct-17-11 |
| Lead Plaintiff Deadline: | Dec-16-11 |
| Court: | District of Tennessee |
| Allegations: | |
AgFeed is an international agribusiness that deals in animal nutrition products and commercial hog production in the United States and China. During the Class Period, the Company's principal executive offices were located in Hendersonville, Tennessee. However, the Company's executive offices are currently located in Grand Junction, Colorado.
The complaint alleges that beginning on March 16, 2009, the Company, along with certain officers and directors at AgFeed, issued a series of materially false and misleading statements to investors about its financial health that were designed to deceive the market and cause shares of AgFeed to trade at artificially high prices.
In particular, 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 on in determining accounts receivable and reserves for doubtful accounts was flawed; (2) allowances for doubtful accounts were wildly 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 the Company's value.
On August 2, 2011, the Company announced preliminary financial results for the second quarter of 2011 that showed 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. Since these revelations have emerged, shares of AgFeed have lost over 72% of their value.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
