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Farmland Partners Inc.

22 days left to seek lead plaintiff status

Case Summary

Company Name
Farmland Partners Inc.
Stock Symbol
FPI
Class Period
May 9, 2017 to July 10, 2018
Motion Deadline
September 9, 2018
Court
District of Colorado

The complaint charges Farmland and certain of its officers with violations of the Securities Exchange Act of 1934.  Farmland is an internally managed real estate company that owns and seeks to acquire high quality North American farmland and makes loans to farmers secured by farm real estate. Farmland owns or has under contract over 166,000 acres in 17 states.

The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose adverse information regarding the Company’s business, operations and financial results, including that Farmland had artificially increased its revenues by making loans to related-party tenants, causing Farmland’s revenues during the Class Period to be overstated.  As a result of these false statements and/or omissions, Farmland securities traded at artificially inflated prices during the Class Period, with its common stock trading at prices of more than $10 per share.

Then on July 11, 2018, Seeking Alpha published an online report alleging that Farmland had artificially increased its revenues “by making loans to related-party tenants who round-trip the cash back to [Farmland] as rent” and that “310% of [Farmland’s] 2017 earnings could be made-up.”  The report further stated that Farmland “neglected to disclose that the majority of its loans [$9.2 million out of a total of $15.4 million] have been made to two members of the management team. . . .  We believe these loans lack economic substance and have been used to artificially increase revenues.”  On this news, the price of Farmland common stock fell $3.37 per share, or nearly 39%, to close at $5.28 per share on July 11, 2018, and the price of Farmland Series B preferred stock fell $6.08 per share, or nearly 25%, to close at $18.49 per share on July 11, 2018.

Class Period: May 9, 2017 - July 10, 2018
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