The Securities and Exchange Commission Announces a Distribution Fund for Investors who Held Shares of AgFeed Common Stock

WASHINGTON, Dec. 12, 2016 /PRNewswire/ --

UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF TENNESSEE
Securities and Exchange Commission
v.
AgFeed Industries, Inc., et al.
No. 3:14-cv-00663

SUMMARY NOTICE TO AGFEED INDUSTRIES, INC. INVESTORS

If you held shares of AgFeed Common Stock at any time during the Recovery Period (March 14, 2008 through and including December 19, 2011), and suffered a loss according to the Distribution Plan you may be eligible for a payment from the Distribution Fund.

PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY.  IF YOU SATISFY THE ELIGIBILITY CRITERIA, YOU MAY BE ENTITLED TO A RECOVERY FROM THE DISTRIBUTION FUND.  THIS NOTICE CONTAINS IMPORTANT INFORMATION REGARDING YOUR ELIGIBILITY.

Background

On October 6, 2014, the Commission filed a settled enforcement action against AgFeed Industries, Inc. ("AgFeed" or "Defendant"), alleging that the Defendant reported fictitious revenues from its China operations from 2008 through June 30, 2011 in order to meet financial targets and prop up the stock price. The fraud caused AgFeed's publicly-reported revenues to be inflated by approximately $239 million during this period. The Commission alleged that the Defendants' conduct violated Section 17(a) of the Securities Act of 1933 ("Securities Act") and Sections 10(b), 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5, 12b-20, 13a-1, 13a-11, and 13a-13.  Pursuant to the Final Judgment, Defendant was found liable for disgorgement in the amount of $18,000,000.00, representing profits gained as a result of the conduct alleged in the Complaint.  Defendant was obligated to pay (i) $12,500,000.00 pro-rata to holders of Class 5B equity interests, as defined in AgFeed's July 22, 2014 Second Amended Chapter 11 Plan of Liquidation Supported by the Official Committee of Equity Security Holders (the "Proposed Plan") in In re AgFeed Industries, Inc., Chapter 11 case No. 13-11762 (BLS) (Bankr. D. Del.) (the "Bankruptcy Case"), and (ii) $5,500,000.00 to the Securities and Exchange Commission, pursuant to a confirmed Chapter 11 plan of liquidation in the Bankruptcy Case (the "Confirmed Plan").  On September 28, 2016, the Commission staff submitted the Distribution Plan to the Court, and it was approved on October 18, 2016.  Pursuant to the Distribution Plan, investors who purchased or acquired AgFeed common stock during the SEC Recovery Period and suffered a loss may be entitled to receive a distribution from the Distribution Fund.

Who is Eligible?

If you purchased or acquired the common stock of AgFeed from March 14, 2008, through and including December 19, 2011, and suffered a loss according to the Distribution Plan you may be eligible for a payment from the Distribution Fund.  If you previously submitted a valid claim in the related Class Action Blitz v. AgFeed Industries, Inc., et al. (Civil Action No. 11-cv-0992) (D. Tenn.) and your claim has an Eligible Loss Amount greater than $0.00 under the SEC Distribution Plan you do not need to file a Proof of Claim Form to share in the distribution from the Distribution Fund unless you wish to modify your claim. If you purchased AgFeed common stock during the SEC Recovery Period and you: (a) did not file a claim in the Class Action; (b) filed a claim in the Class Action that was denied; or (c) filed a claim in the Class Action that was approved, but under the terms of the SEC Distribution Plan has an Eligible Loss Amount less than or equal to $0.00, you must submit a completed Proof of Claim Form with the necessary documentation postmarked no later than March 31, 2017 to be eligible to participate in the Distribution Fund.    

Obtaining a Distribution Plan Notice and Proof of Claim Form

If you believe you may be eligible and have not received a Notice of Eligibility informing you that you do not need to file a claim, you must submit a complete Proof of Claim Form to the Distribution Agent postmarked no later than March 31, 2017 to be eligible to participate in the Distribution Fund.  Proof of Claim Forms will be mailed to potentially eligible claimants identified by the Distribution Agent. In addition, you may download and print the Proof of Claim Form from the Distribution Fund Website at www.SECvAgFeedDistributionFund.com or you may request that the Distribution Agent send you a Proof of Claim Form by calling (888) 286-8201, emailing [email protected] or writing to SEC v. AgFeed Distribution Fund, Distribution Agent, P.O. Box 3757, Portland, OR 97208-3757.

URL: www.SECvAgFeedDistributionFund.com

SOURCE United States District Court for the Middle District of Tennessee

Related Links

http://www.secvagfeeddistributionfund.com