Case Page

 

Case Status:    SETTLED
On or around 12/08/2014 (Other)

Filing Date: October 18, 2011

According to a press release dated October 18, 2011, the Complaint charges that the Company and certain of its officers and directors violated federal securities laws. In particular, the complaint alleges that officials at the Company failed to disclose to investors material adverse facts that: (1) the Company’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; (2) allowances for doubtful accounts were wildly undervalued; (3) accounts were overvalued and bad debts were undervalued, causing reported asset values to be overstated and expenses to be understated; and (4) the Company 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 the Company’s value.

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 the Company 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, the Company 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. Since these revelations have emerged, shares have lost over 72% of their value.

On April 10, 2012, the Court issued an Order consolidating cases, appointing lead plaintiff, and approving the selection of lead counsel.

On February 14, 2013, the plaintiffs filed a consolidated and amended complaint.

On September 19, 2013, the plaintiffs filed a second consolidated and amended complaint.

On September 17, 2014, the parties entered into a Stipulation of Settlement. This Settlement was preliminarily approved by the Court on October 2. On December 8, the Court issued an Order granting final approval of the Settlement and dismissing this case with prejudice.

COMPANY INFORMATION:

Sector: Consumer Non-Cyclical
Industry: Food Processing
Headquarters: China

SECURITIES INFORMATION:

Ticker Symbol: FEED
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: M.D. Tennessee
DOCKET #: 11-CV-00992
JUDGE: Hon.Todd J. Campbell
DATE FILED: 10/18/2011
CLASS PERIOD START: 03/16/2009
CLASS PERIOD END: 08/02/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bone McAllester Norton PLLC
    511 Union St., Suite 1600, Bone McAllester Norton PLLC, TN 37219
    615-238-6300 615-238-6301 ·
  2. Robbins Umeda LLP (Former San Diego Address)
    610 West Ash Street, Suite 1800, Robbins Umeda LLP (Former San Diego Address), CA 92101
    619.525.3990 619.525.3990 · info@robbinsumeda.com
No Document Title Filing Date
COURT: M.D. Tennessee
DOCKET #: 11-CV-00992
JUDGE: Hon.Todd J. Campbell
DATE FILED: 09/19/2013
CLASS PERIOD START: 03/16/2009
CLASS PERIOD END: 09/29/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bramlett Law Offices (Nashville)
    2400 Crestmoor Road; P.O. Box 150734, Bramlett Law Offices (Nashville), TN 37215
    615.248.2828 866.816.4116 ·
  2. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
  3. The Rosen Law Firm P.A. (New York)
    275 Madison Avenue, 34th Floor, The Rosen Law Firm P.A. (New York), NY 10016
    (212) 686-1060 (212) 202-3827 ·
No Document Title Filing Date