AgFeed Industries, Inc. faces Investor Investigation over possible Violations of SecuritiesLaws

Date:2011-09-08zhjx  Text Size:

An investigation on behalf of investors of AgFeed Industries, Inc. (NASDAQ: FEED) over possible securities laws violations was announced and NASDAQ:FEED stockholders should contact the Shareholders Foundation at mail@shareholdersfoundation.com


An investigation on behalf of investors in shares of AgFeed Industries, Inc. (NASDAQ:FEED) over possible Violations of Securities Laws by AgFeed Industries and others was announced.

 


If you purchased shares of AgFeed Industries, Inc. (NASDAQ: FEED), you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

 


The investigation by a law firm focuses on possible NASDAQ:FEED shareholder claims based on potential violations of the federal securities laws. Specifically the investigation concerns whether AgFeed Industries  or others may have violated securities laws by issuing a series of statements regarding its business, its prospects and its operations that were materially false and misleading at the time they were made.


AgFeed Industries, Inc. reported on the one hand a significant increase in its annual Revenue from $36.16million in 2007 to $243.61million in 2010, but reported on the other hand a significant decrease in its Net Income from $16.95million for 08, respectively $10.35million for 09 to a Net Loss of $42.70million in 2010.

 


Shares of Ag Feed Industries, Inc. (Public, NASDAQ:FEED) fell from over $3 in the beginning of 2011 to slightly above $1 per share in June 2011. Then on August 1, 2011 NASDAQ: FEED stocks spike to almost $2 per share, but fell the very next day to $1.31 per share after AgFeed Industries announced on August 2, 2011 its preliminary results for the second quarter of 2011. Among other things, the Company said it expects for the second quarter of 2011to report revenues of approximately $84.0 million and a net loss of approximately $17 million for the three months ended June 30, 2011. AgFeed Industries also announced that due to "operating pressures," AgFeed Industries would be "establishing reserves due to concerns regarding credit quality."

 


Since the August 2nd announcement NASDAQ:FEED continued to lose value and close on September 2, 2011 at $0.925 per share.

 

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