SOURCE: Brower Piven, A Professional Corporation

October 31, 2011 17:46 ET

Brower Piven Announces the Filing of a Class Action Lawsuit Against AgFeed Industries, Inc. Expanding the Class Period to Include March 12, 2008 Through September 29, 2011 and Encourages Investors Who Have Substantial Financial Losses From Investment in AgFeed Industries, Inc. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the December 19, 2011 Lead Plaintiff Deadline

STEVENSON, MD--(Marketwire - Oct 31, 2011) - Brower Piven, A Professional Corporation announces that 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 Industries, Inc. ("AgFeed" or the "Company") (NASDAQ: FEED) during the period between March 12, 2008 and September 29, 2011, inclusive (the "Class Period").

If you have suffered a net loss for all transactions in AgFeed Industries, Inc. common stock during the Class Period, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 60 years.

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than December 19, 2011 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff.

The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period that 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 such that the Company's allowances for doubtful accounts and bad debts were undervalued, accounts were overvalued, expenses were understated, and reported asset values were overstated. According to the complaint, after, 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 after adding $5 million in allowances for its bad debt expenses, the value of AgFeed shares declined significantly.

If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Stevenson, Maryland
    410/415-6616
    Email Contact