Farmland Partners, Inc. (FPI) Allegedly Overstated it Revenues
According to the class action complaint, Farmland Partners, Inc. (FPI) artificially increased its revenue by marking loans to related party tenants. During the class period, Farmland Partners touted increased earnings “as indicative of the growth we achieved…” and the result of increasing scale and reducing expenses. However, on July 11, 2018, an on-line article published by Rota Fortunae alleged that Farmland Partners artificially increased revenues “by making loans to related-party tenants who round-trip the cash back to FPI as rent.” The report asserted that as much of 310% of Farmland Partners’ 2017 earnings could be fabricated. The report also stated there was evidence that Farmland Properties significantly overpaid for properties. On this news, Farmland Partners common stock fell almost 40% to close at $5.38 on July 11, 2018, and its Series B preferred stock fell almost 35% to close at $18.49 on July 11, 2018.
Farmland Partners, Inc. (FPI) Shareholders Have Legal Options
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