NEW YORK, May 23, 2008 (PRIME NEWSWIRE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) ("Pomerantz") reminds investors of Agria Corporation (NYSE:GRO) ("Agria" or the "Company") that June 10, 2008 is the deadline to ask the Court to appoint you as Lead Plaintiff in the class action. Lead plaintiffs must meet certain legal requirements. Pomerantz filed a class action lawsuit in the United States District Court, Southern District of New York, against the Company and certain officers of the company. The class action was filed on behalf of purchasers of the securities of the Company who purchased or otherwise acquired Agria's securities pursuant or traceable to the Company's November 6, 2007 Initial Public Offering (the "IPO" or the "Offering"). The complaint alleges violations of Sections 11 and 15 of the Securities Act of 1933 (15 U.S.C. Sections 77k and 77o).
Agria Corporation engages in the research and development, production, and sale of upstream agricultural products in the People's Republic of China. The complaint alleges that on November 6, 2007, Agria conducted its IPO, filing a Registration Statement and Prospectus with the SEC. The IPO was successful for the Company and its selling shareholder, raising over $282 million by selling the Company's securities to investors at $16.50 per share. On April 7, 2007, Agria surprised the market when it announced that the Company's auditors were unable to begin their 2007 audit of Agria's financials due to various accounting and payment issues. The Company also announced that its Chief Operating Officer had resigned and disclosed for the first time that its CEO was actively involved in protracted compensation negotiations with the COO and other key executives. Consequently, shares of the Company's securities declined $3.34 per share, or almost 38 percent, representing a cumulative loss of $11.04, or 66.9 percent, of the value of the Company's shares since the time of its IPO.
The complaint further alleges that, in connection with the Company's IPO, defendants failed to disclose or indicate the following: (1) that the Company had failed to secure enforceable employment agreements with its COO and other key executives prior to its IPO; (2) that the Company was in negotiations with its COO and other key executives to provide multi-million dollar compensation packages and that these increased compensation expenses would materially impact the Company's financial results going forward; (3) that various accounting and payment issues, which existed at the time of the IPO, would subsequently prohibit the Company's auditors from completing its audit of the Company's financial statements; (4) that the Company lacked adequate internal and financial controls; and (5) that, as a result of the foregoing, the Company's Registration Statement was false and misleading at all relevant times.
If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Teresa L. Webb (tlwebb@pomlaw.com) of the Pomerantz Firm at 888.476.6529 (or 888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz Firm, which has offices in New York, Chicago, Washington, D.C., Columbus, Ohio and the San Francisco Bay area, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca