Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in Farmland Partners (NYSE:FPI) in connection to alleged violations of securities laws by FPI. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Farmland Partners between May 9, 2017 and July 10, 2018.
The class action complaint specifically alleges that during the period in question, FPI might have provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, namely: that the company engaged in artificial revenue-inflation by providing loans to “related-party tenants” who returned the funds to the company as rent; that consequently the company’s revenues were overstated; and that consequently the company’s statements to the public during the relevant period were false and misleading. When this news was announced via an online publication on July 11, 2018, the company’s stock declined $3.37/share, or approximately 39%, closing at $5.28/share on that day. The complaint alleges that when true details emerged, investors suffered losses.
According to the company’s website, Farmland Partners is a real estate company “that owns and seeks to acquire high-quality farmland throughout North America addressing the global demand for food, feed, fiber and fuel.” According to its description, as of May 9, 2018, the company owns “or has under contract” more than 166,000 acres in states including Alabama, Arkansas, California, Colorado, Florida, Michigan, Mississippi, Nebraska, Texas and Virginia. Its lands are farmed by “over 125 tenants” who are farming over “30 major commercial crops.” The company trades on the New York Stock Exchange under the symbol FPI.