Gilman Law Investigates Lawsuit Against AgFeed Industries, Inc.
Gilman Law LLP, a leading national securities law firm, is actively investigating shareholder allegations that AgFeed Industries, Inc. (“AgFeed”) and certain of its officers and directors violated the Securities Exchange Act 1934. AgFeed is a Nevada corporation that focuses on animal nutrition which consists of research and development, manufacturing, marketing, and sale of premix, concentrates, and complete feed for use in domestic animal husbandry markets, primarily for hog production markets in China.
For over 30 years, the lawyers at Gilman Law have been involved in all major aspects of securities fraud litigation. The firm specializes in cases involving stock manipulation, securities fraud, and shareholder rights violations. If you purchased or otherwise acquired shares of common stock of AgFeed Industries, Inc. (NASDAQ: FEED) between March 12, 2008 and September 29, 2011, and either lost money on the transaction or still hold the shares, you may contact Gilman Law LLP, by no later than December 19, 2011 to discuss your rights, including as to recovery of your losses or to obtain additional information.
Misleading Sales Forecasts
A class action lawsuit has been commenced in the United States District Court for the Middle District of Tennessee on behalf of purchasers of the common stock of AgFeed. AgFeed repeatedly assure investors on numerous occasions that the Company was well positioned to meet their financial goals for 2011.
Failure to Disclose Information
The Complaint alleges that AgFeed and certain of its officers and directors failed to disclose material information to the investing public concerning their business and prospects. AgFeed allegedly 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. The suit further alleges that AgFeed failed to properly monitor and/or assess the creditworthiness of certain customers so that various accounts receivables were uncollectible. AgFeed also allegedly failed to disclose their doubtful accounts allowances were undervalued and lacked adequate internal financial controls. As a result, Defendants lacked a reasonable basis for their positive statements about the Company, financial condition and prospects.
Artificially Inflated Stock Prices
As a consequence of these materially false and misleading statements, the price of the Company’s stock was artificially inflated throughout the Class Period. On September 29, 2011, AgFeed announced that its Board of Directors had established a special committee to investigate the accounting practices of the Company’s Chinese farm assets 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. As a result of this news, shares of common stock of AgFeed fell from a close of $0.65 per share of September 29, 2011, to a close of $0.52 per share on September 30, 2011.
Gilman Law has extensive experience representing both individual and institutional investors in securities class action suits. Gilman Law has recovered over a billion dollars for its clients and can help you recover any losses that you have incurred as a result of AgFeed’s fraudulent practices. For a free evaluation of your case or to obtain additional information, please visit www.investment-losses.com or CALL TOLL FREE (888) 252-0048.