SOURCE: Bronstein, Gewirtz and Grossman, LLC

April 18, 2008 18:45 ET

Bronstein, Gewirtz & Grossman, LLC Announces That a Class Action Has Been Filed Against Agria Corporation

NEW YORK, NY--(Marketwire - April 18, 2008) - Bronstein, Gewirtz & Grossman, LLC announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York against Agria Corporation ("Agria" or the "Company") (NYSE: GRO) and various individuals on behalf of purchasers of Agria securities pursuant or traceable to the Company's November 6, 2007 initial Public offering (the "IPO").

Agria is a China-based company engaged in the research and development, production, and sale of upstream agricultural products. The complaint alleges Agria and certain of its officers and directors violated the Securities Act of 1933 by issuing false and misleading statements to the public relating to the IPO and registration statement.

On November 6, 2007, the Company and its selling shareholder, Brothers Capital Limited, raised over $282 million by selling 17,150,000 of the Company's securities to investors at a price of $16.50 per share.

Then on April 7, 2008, after the close of the market, Agria shocked investors when it announced that its auditors were unable to begin their audit of the Company's financial statements for 2007 due to various accounting and payment issues. The Company also announced that its COO had resigned. Further, the Company disclosed for the first time that its Chief Executive Officer was actively involved in protracted compensation negotiations with the COO and other key executives. These executives stood to receive $18 million in cash and transfer of Company shares (which represented 22% of the Company). The Company noted payment of cash and/or shares to the COO and other executives "as compensation and incentive for their past and continuing services in connection with the proposed transaction will likely result in material compensation charges to the Company in the period in which the payment is made."

Upon the release of this news, shares of the Company's securities declined $3.34 per share, or almost 38 percent, to close on April 8, 2008 at $5.46 per share, on unusually heavy trading volume. This closing price on April 8, 2008 represented a cumulative loss of $11.04, or 66.9 percent, of the value of the Company's shares at the time of its IPO just months prior.

No Class has yet been certified in the above action. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact either Peretz Bronstein or Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email eitan@bgandg.com. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.

Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate work, private securities offerings, and securities arbitration.

Contact Information

  • Contacts:
    Peretz Bronstein
    Eitan Kimelman
    Bronstein, Gewirtz & Grossman, LLC
    212-697-6484
    Email Contact