According to the dockets posted on this site, the law suit was transferred to the Northern District of Georgia, Atlanta Division and refiled with a new docket number 04-CV-1099. On May 04, 2004, the plantiffs filed for dismissal without prejudice. The court issued an order dated May 10, 2004, granting plaintiffs' motion for dismissal and terminating the case.
The original complaint charges AGCO and certain of its officers with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. During the Class Period, the defendants issued a series of material misrepresentations to the market concerning the Company's financial results. More specifically, the defendants' statements during the Class Period were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (1) that the Company improperly recorded revenue on its "bill and hold" transactions where risk did not pass to the customer; (2) that the Company recklessly disregarded its own policies regarding recognizing revenue; and (3) as a result of the foregoing, the Company's net income and earnings per share published during the Class Period were not in accordance with Generally Accepted Accounting Principles and were therefore materially false and misleading.
The complaint further alleges that on February 5, 2004, the Company shocked the market when it issued a press release announcing its fourth quarter and year-end results for fiscal 2003, the period ended December 31, 2003. At that time, the Company also disclosed that AGCO received an informal inquiry from the SEC asking AGCO for its policies and related information with regard to AGCO's accounting for revenue recognition (particularly bill and hold transactions), sales and sales returns and allowances, plant and facility closing costs and reserves, and personal use of corporate aircraft. Upon this news, shares of the Company's stock fell approximately 16%, or $3.10 per share, to close at $16.25 per share on extremely high trading volume.