New suit filed over stock losses

Another investor has filed suit against a Henderson seed company and its former chief executive officer.

Martin Blaustein, a New York resident, filed suit in U.S. District Court in Las Vegas against AgriBioTech Inc. and Johnny Thomas, who stepped down as the company's CEO earlier this year.

The suit accuses the company of misleading the public about the potential performance of its stock. The suit says Thomas did not dispute a report that the stock could be worth $70 a share if the company was sold after the company retained Merrill Lynch to explore strategic alliances.

The Blaustein suit said it may develop a class action against AgriBioTech among investors who purchased securities between Oct. 8 and Jan. 22.

AgriBioTech said at least 14 lawsuits are pending against it over the collapse of its stock price, and that it denies wrongdoing in all the cases.

archive