A possible cause for today's price drop:
Milberg Weiss Files Class Action Suit Against AgriBioTech Inc., Its Officers and Directors, and Its Accountants Alleging Misrepresentations and False Financial Statements
SAN DIEGO--(BUSINESS WIRE)--Jan. 15, 1999--Milberg Weiss today announced that a class action has been commenced in the United States District Court for the District of New Mexico on behalf of purchasers of AgriBioTech Inc. ("AgriBioTech") (Nasdaq:ABTX) common stock during the period between Sept. 24, 1997 and Aug. 26, 1998 (the "Class Period").
The complaint alleges that the public investors who invested in AgriBioTech based on the Company's reported financial results, its representations about the success of the Company's consolidation strategy and its forecasts of strong revenue and earnings growth in F98-F99, paid as high as $29-1/2 per share for AgriBioTech stock during the Class Period and have suffered millions of dollars in damage as a result of defendants' fraud. During F97 and F98, AgriBioTech reported favorable financial results with strong revenue growth and profitability causing the Company's stock to trade at artificially inflated levels. Ultimately, AgriBioTech was forced by the SEC to change its accounting practices with regard to acquisitions and to disclose the extent of its accounting manipulations in prior quarters. AgriBioTech's reported revenues were, as a result of the manipulations, overstated by 20% in F97 and F98 and the loss it had actually incurred for F97 and F98 was converted into a profit. Upon these startling revelations, AgriBioTech's stock price declined to $8-1/8 per share, a more than 71% reduction from its Class Period high of $29-1/2.
Plaintiff seeks to recover damages on behalf of all purchasers of AgriBioTech common stock during the Class Period (the "Class"). The plaintiff is represented by several law firms, including Milberg Weiss Bershad Hynes & Lerach LLP, who have expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Milberg Weiss has been actively engaged in commercial litigation, emphasizing securities and antitrust class actions, for more than 30 years. The firm has offices in New York, San Diego, San Francisco, Los Angeles and Boca Raton and is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to major positions in complex multi-district or consolidated litigations. Milberg Weiss has taken a lead role in numerous important actions on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total approximately $2 billion. Visit the firm's Web site at milberg.com.
If you are a member of the Class described above, you may, no later than 60 days from today, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, William Lerach, Alan Schulman or Darren Robbins of Milberg Weiss at 800/449-4900 or via e-mail at wsl@mwbhl.com.
CONTACT:
Milberg Weiss Bershad Hynes & Lerach LLP
William Lerach, 800/449-4900
wsl@mwbhl.com
KEYWORD: CALIFORNIA
BW0163 JAN 15,1999
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