AgFeed Investor Says Board's Lies Drove $430M Loss

Law360, New York (November 9, 2011, 12:53 PM EST) -- An AgFeed Industries Inc. shareholder on Tuesday sued former and current members of the hog farmer's board of directors in Tennessee federal court, claiming they misled investors about AgFeed's financial health and caused its market capitalization to plunge by $430 million.

In a derivative complaint, shareholder Josh Miller accuses AgFeed Chairman and interim CEO John A. Stadler, as well nine others, of falsely trumpeting the company's hog-production capabilities and artificially inflating its stock price.

The company touted its recurring record revenue and operating income and reported...
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