SOURCE: Saxena White P.A.

September 11, 2014 16:57 ET

Saxena White P.A. Files Securities Fraud Class Action Against Marrone Bio Innovations, Inc.

BOCA RATON, FL--(Marketwired - Sep 11, 2014) - Saxena White P.A. has filed a securities fraud class action lawsuit in the United States District Court for the Eastern District of California against Marrone Bio Innovations, Inc. ("Marrone Bio" or the "Company") (NASDAQ: MBII) on behalf of investors who purchased or otherwise acquired the common stock of the Company during the period from March 7, 2014 through September 2, 2014 (the "Class Period"). 

Marrone Bio provides pest management and plant health products. The Company purportedly assists customers around the globe with controlling pests, improving plant health, and increasing crop yields while reducing the environmental pesticide load, decreasing chemical residues on food, and fighting the development of pest resistance.

The Complaint brings forth claims for violations of the Securities Exchange Act of 1934. The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects.

Specifically, the Complaint alleges that throughout the Class Period, defendants disseminated false and misleading statements and failed to disclose that: (a) the Company had improperly recognized revenue in violation of Generally Accepted Accounting Principles; (b) Marrone Bio's internal accounting controls were deficient and permitted the premature recognition of revenue, leading to materially misstated financial results; and (c) as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times. As a result of defendants' false statements, Marrone Bio's stock traded at artificially inflated prices during the Class Period, with a high of $15.00 per share on March 7, 2014.

On September 3, 2014, the Company announced that its Audit Committee had "commenced an internal investigation after management learned of documents calling into question the recognition of revenue in the fourth quarter of 2013 for an $870,000 transaction." Marrone Bio also disclosed that the Audit Committee concluded that the Company's previously reported financial statements for the fiscal year ended December 31, 2013, the related report of the independent auditors on those 2013 financial statements dated March 25, 2014, and the unaudited interim financial statements for the quarters ended March 31, 2014 and June 30, 2014, should no longer be relied upon.

On this news, the Company's shares fell $2.50 or over 44%, from $5.65 on September 2, 2014, to close at $3.15 on September 3, 2014, on extremely high volume of 2.5 million shares traded, or 25 times the average daily trading volume during the Class Period.

You may obtain a copy of the Complaint and join the class action at www.saxenawhite.com

If you purchased Marrone Bio stock between March 7, 2014 and September 2, 2014, inclusive, you may contact Lester Hooker (lhooker@saxenawhite.com) at Saxena White P.A. to discuss your rights and interests.

If you purchased Marrone Bio common stock during the Class Period of March 7, 2014 through September 2, 2014, and wish to apply to be the lead plaintiff in this action, a motion on your behalf must be filed with the Court no later than November 4, 2014. You may contact Saxena White P.A. to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. Please note that you may also retain counsel of your choice and need not take any action at this time to be a class member.

Saxena White P.A., located in Boca Raton, specializes in prosecuting securities fraud and complex class actions on behalf of institutions and individuals. Currently serving as lead counsel in numerous securities fraud class actions nationwide, the firm has recovered hundreds of millions of dollars on behalf of injured investors and is active in major litigation pending in federal and state courts throughout the United States.

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