CASES
Monsanto Company (2010)
Class Period: Jan 7, 2009 to May 27, 2010
Lead Plaintiff Deadline: Sep 29, 2010 + Deadline passed
Summary of Case:
A securities class action has been filed against Monsanto Company (2010) (MON) ("Monsanto" or the "Company") on behalf of all securities purchasers from January 7, 2009 through May 27, 2010, inclusive ("Class Period"), in the United States District Court for the Eastern District of Missouri.
The complaint alleges that throughout the Class Period, defendants failed to disclose material adverse facts about Monsanto's true financial condition, business and prospects. Specifically, defendants failed to disclose: (i) that demand for the Company's herbicide products was substantially declining as competition from Chinese producers of generic glyphosate products was causing a collapse in the prices of glyphosate products; (ii) that the Company would be unable to maintain herbicide prices as defendants knew that they had to cut prices significantly to be able to compete with the avalanche of generic herbicide products that were entering the market; and (iii) that, as a result of the foregoing, defendants' positive statements about the Company, its earnings, prospects and financial condition were lacking in a reasonable basis and materially misleading.
On May 27, 2010, the Company announced that it was "dramatically" repositioning its Roundup® business, lowering its full-year 2010 guidance to $2.40 to $2.60 a share from $3.10 to $3.30 a share, and lowering its free cash flow guidance. The Company also announced that its guidance for Roundup® and other glysophate-based products was now $50 to $200 million, down from $600 million on April 7, 2010. On this news, the Company's stock price fell from a price of $52.66 prior to the announcement to close at $50.27 on extremely heavy volume.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.