Brief: AgriBioTech sued for fraud
Monday, Jan. 18, 1999 | 11:26 a.m.
The San Diego law firm Milberg Weiss said Friday the suit was filed on behalf of purchasers of AgriBioTech stock between Sept. 24, 1997, and Aug. 26, 1998.
The suit claims investors paid as much as $29.50 per share for AgriBioTech stock, which the suit says declined in value to $8.13 when AgriBioTech was forced by federal regulators to change its accounting practices. The stock closed Friday at $14.38.
The suit claims AgriBioTech manipulated financial statements to show it was earning money when in fact it was sustaining losses; and that it overstated revenues by 20 percent in fiscal years 1997 and 1998.
AgriBioTech, a seed company, denied the allegations and said its stock volatility during the period at issue was generally in line with the decline of all Nasdaq small cap stocks.
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