Robbins LLP: Amira Nature Foods, Ltd. (ANFI) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that an investor of Amira Nature Foods, Ltd. (NYSE: ANFI) has filed a federal securities fraud class action complaint in the U.S. District Court for the Central District of California. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between September 27, 2012 and February 9, 2015. Amira processes, distributes, and markets packaged specialty rice and other food products.
Amira Misrepresents Its Business Practices
According to the complaint, Amira shares fell $3.45 per share, or nearly 26%, to close at $9.95 on February 9, 2015, following a report issued by Prescience Point Research Group, a third party analyst firm. In the report, Prescience highlighted gross financial negligence and a lack of internal controls over financial reporting at Amira. Specifically, the report notes that Amira overstated its: (i) Basmati rice export sales by 145% in fiscal 2013 and 117% in fiscal 2014; and (ii) exports by $100 million in fiscal 2013 and $102 million in fiscal 2014. Accordingly, the report concludes that 24% and 18.7% of Amira sales in fiscal 2013 and fiscal 2014 respectively, were fabricated. The report also points to evidence that Amira engaged in material related party transactions and that Amira’s Chief Executive Officer used company resources for personal use. The complaint alleges that defendants deceived the investing public through these misrepresentations and omissions of material fact and caused shareholders to purchase Amira’s stock at artificially inflated prices.
Amira Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.