Class Action Lawsuit – Agria Corp. Charged with Securities Fraud by The Pomerantz Firm

NEW YORK, May 13, 2008 (Lawfuel) — Pomerantz Haudek Block
Grossman & Gross LLP ( (“Pomerantz”) has filed a
class action lawsuit in the United States District Court, Southern
District of New York, against Agria Corporation (“Agria” or the
“Company”) (NYSE:GRO) 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; and (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 purchased or acquired the securities of Agria Force Protection
since the time of the Company’s IPO on November 6, 2007, you have until
June 10, 2008 to ask the Court to appoint you as lead plaintiff for the
class. Lead plaintiffs must meet certain legal requirements.
Shareholders outside the United States may join the action. If you wish
to review a copy of the Complaint, to discuss this action, or have any
questions, please contact Teresa L. Webb ([email protected]) 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.

Scroll to Top