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Faruqi & Faruqi, LLP Announces Investigation of AgFeed Industries, Inc.

  //house-home.news-articles.net/content/2011/10/2 .. nces-investigation-of-agfeed-industries-inc.html
  Published in House and Home on Friday, October 21st 2011 at 16:10 GMT by Market Wire
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NEW YORK--([ BUSINESS WIRE ])--Faruqi & Faruqi, LLP, a national law firm concentrating on investor rights is investigating potential wrongdoing at AgFeed Industries, Inc. (aAgFeeda or the aCompanya) (Nasdaq: FEED). Faruqi & Faruqi, LLP seeks to determine whether certain officers and directors at AgFeed violated federal securities laws in connection with statements made to the Companya™s shareholders.

Request more information now by clicking here: [ www.faruqilaw.com/FEED ]

The investigation focuses on whether: (1) AgFeed avoided correctly reporting the Companya™s bad debt levels by relying on a flawed aformula based analysisa; (2) the Companya™s allowances for doubtful accounts were highly undervalued; and (3) AgFeeda™s accounts receivable were overvalued and its bad debts were undervalued, causing reported asset values to be overstated and expenses to be understated.

On August 2, 2011, AgFeed announced disappointing preliminary second quarter financial results, including an anticipated loss of $17 million and $5 million in allowances for bad debt expenses. Further, on August 9, 2011, AgFeed disclosed in its Form 10-Q filed with the SEC that the Company had only $13.2 million in accounts receivables, net of a $7 million allowance for doubtful accounts as of June 30, 2011. This is in stark contrast to the $28.6 million in accounts receivable, net of a $1.9 million allowance for doubtful accounts, for the prior quarter.

Additionally, on September 29, 2011, AgFeeda™s Board established a special committee to investigate the Companya™s accounting practices in relation to its Chinese operations.

Take Action

If you purchased AgFeed securities between March 16, 2009 and August 2, 2011 and you would like to discuss your legal rights, visit [ www.faruqilaw.com/FEED ]. You can also contact us by calling Anthony Vozzolo or Richard W. Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [ avozzolo@faruqilaw.com ] or [ rgonnello@faruqilaw.com ] Faruqi & Faruqi, LLP also encourages anyone with information regarding AgFeeda™s conduct during the period in question to contact the firm, including whistleblowers, former employees, shareholders and others.

About Faruqi & Faruqi, LLP

Faruqi & Faruqi, LLP is a national law firm, representing investors, consumers and companies in the prosecution of claims under state corporate and consumer laws and the federal securities and antitrust laws. The lawyers at Faruqi & Faruqi, LLP have demonstrated a clear commitment to championing the rights of shareholders and consumers nationwide.

Anthony Vozzolo, Esq.
Richard W. Gonnello, Esq.
FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Telephone: (877) 247-4292 or (212) 983-9330
E-mail: [ avozzolo@faruqilaw.com ]
[ rgonnello@faruqilaw.com ]

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