AgFeed Industries Inc. (fka FEEDQ)

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More of the same...News for 'FEED' - (Rigrodsky & Long, P.A. Announces Class Action Lawsuit Against AgFeed Industries, Inc.)

WILMINGTON, Del., Oct 19, 2011 (BUSINESS WIRE) -- Rigrodsky & Long, P.A.
announces that a class action lawsuit has been filed in the United States
District Court for the Middle District of! Tennessee on behalf of all persons or
entities who purchased or otherwise acquired the stock of AgFeed Industries,
Inc. ("AgFeed" or the "Company") (Nasdaq: FEED) between March 16, 2009 and
August 2, 2011, inclusive (the "Class Period"), alleging violations of the
Securities Exchange Act of 1934 (the "Complaint").

If you wish to discuss this action or have any questions concerning this notice
or your rights or interests, please contact Timothy J. MacFall, Esquire or Noah
R. Wortman, Case Development Director of Rigrodsky & Long, P.A., 919 North
Market Street, Suite 980 Wilmington, Delaware, 19801 at [phone], by
e-mail to [e-mail], or at:
http://investigations.rigrodskylong.com/agfeedindustriesinc-feed/.

According to its website, AgFeed is an international agri-business with
operations in the United State and China. Founded in 1995 with a focus on animal
nutrition, today AgFeed is made up of three distinct ! operating units: Animal
Nutrition, Hog Production and Harvesting.
The Complaint names AgFeed and certain of the Company's current and former
executives and officers as defendants. The Complaint alleges that during the
Class Period, AgFeed made materially false and misleading statements regarding
the Company's financial health and in particular relating to its Animal
Nutrition business. As a result, AgFeed's stock price traded at artificially
inflated prices during the Class Period.

Specifically, the Complaint alleges that officials at the Company failed to
disclose to investors material adverse facts that: (1) AgFeed's collection
efforts and credit dealings with its animal nutrition customers were not working
because the "formula based analysis" the Company relied upon in determining
accounts receivable and reserves for doubtful accounts was flawed; (2)
allowances for doubtful accounts were materially undervalued; (3) accounts were
overvalued and bad debts were undervalued, causing reported ass! et values to be
overstated and expenses to be understated; and (4) AgFeed exaggerated its market
edge as the combination of overstated assets and understated expenses resulted
in creating an illusion of heightened profitability and failed to provide a
"long-term picture" of AgFeed's value.

On August 2, 2011, the Company announced its preliminary financial results for
the second quarter of 2011, reporting that the Company was performing well below
expectations and that AgFeed expected to post a loss of $17 million, as it added
$5 million in allowances for its bad debt expenses. Additionally, on August 9,
2011, AgFeed disclosed to the U.S. Securities and Exchange Commission the true
nature of its finances and the Company's decision to withdraw the Registration
Statement for its Animal Nutrition business.

Subsequently, on September 29, 2011, AgFeed announced that its Board of
Directors has established a special committee to invest! igate the accounting
relating to certain of the Company's Chinese f arm assets (acquired during 2007
and 2008) used in its hog production business, as well as the validity and
collectability of certain of the Company's accounts receivables relating to its
animal nutrition business in China and any other issues that may arise during
the course of the investigation.

If you wish to serve as lead plaintiff, you must move the Court no later than
December 17, 2011. A lead plaintiff is a representative party acting on behalf
of other class members in directing the litigation. In order to be appointed
lead plaintiff, the Court must determine that the class member's claim is
typical of the claims of other class members, and that the class member will
adequately represent the class. Your ability to share in any recovery is not,
however, affected by the decision whether or not to serve as a lead plaintiff.
Any member of the proposed class may move the court to serve as lead plaintiff
through counsel of their c! hoice, or may choose to do nothing and remain an
absent class member.

While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the
firm, with offices in Wilmington, Delaware and Garden City, New York, regularly
litigates securities class, derivative and direct actions, shareholder rights
litigation and corporate governance litigation, including claims for breach of
fiduciary duty and proxy violations in the Delaware Court of Chancery and in
state and federal courts throughout the United States.

Attorney advertising. Prior results do not guarantee a similar outcome.

SOURCE: Rigrodsky & Long, P.A.




CONTACT:
Rigrodsky & Long, P.A.
Timothy J. MacFall, Esquire
Noah R. Wortman, Case Development Director
888-969-4242
302-295-5310
Fax: [phone]
[e-mail]
http://www.rigrodskylong.com




Cop! yright Business Wire 2011

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KEYWORD: United States

North America

Delaware

Tennessee

INDUSTRY KEYWORD: Professional Services

Legal

SUBJECT CODE: Lawsuit