AgFeed Industries, Inc.
AgFeed Industries, Inc. Securities Settlement
The lawsuit was settled for $7 million in cash. The following is a summary of the proceedings in this lawsuit: ‘known as Blitz v. AgFeed, Industries, Inc., et al. Case No. 3:11-cv-0992. William McCaffrey, Ginger Haubeck-McCaffrey, Joseph Boccuti, Larry Ewing and Stephen Arsenault (also known as the AgFeed Investor Group) were appointed by the Court to represent the Class as Class (or Lead) Plaintiffs. The Defendants in this Action are AgFeed, former AgFeed executives and directors John A. Stadler, Gerald Daignault, Clay Marshall, Edward Pazdro, Arnold Staloff, Frederic Rittereiser, Ivan Gothner, and John Rourke, and AgFeed former accountants McGladrey and Goldman. This Action alleges violations of the Federal Securities Laws (specifically Sections 10(b) and 20(a) of the Exchange Act (15 U.S.C. Â§78j(b) and 78(t)(a)) and Rule 10b-5 promulgated thereunder (17 C.F.R. Â§240.10b-5)) against Defendants. Prior to its bankruptcy, AgFeed engaged in the manufacture and sale of animal nutrition products in China, and in the production of finished and breeding hogs throughout the United States and China. In 2006 AgFeed went public in the United States via a reverse takeover, and in late 2007 AgFeed became a publicly traded company. During the Class Period, AgFeed Common Stock traded on the NASDAQ Stock Exchange (NASDAQ) under the ticker symbol FEED. Class Plaintiffs allege that, during the Class Period, AgFeed stock price was artificially inflated as a result of a series of untrue or materially misleading statements regarding AgFeed financial performance and internal controls. Class Plaintiffs further contend that Defendants made these statements knowing them to be false or misleading, or recklessly disregarding their false or misleading natures, and that investors suffered injury as a result of the alleged inflation and ineffective internal controls. Class Plaintiffs additionally allege that AgFeed accountants failed to conduct proper audits of AgFeed financial statements and acted recklessly in conducting audits of AgFeed financial statements.’