Monsanto Company Hit by Investor Lawsuit Over Alleged Securities Laws Violations
An investor in MON stock filed a lawsuit in the United States District Court for the Eastern District of Missouri on behalf of purchasers of the common stock of Monsanto Company (NYSE:MON) between January 7, 2009 and May 27, 2010, over alleged violations of Federal Securities Laws by Monsanto Company.
Monsanto Company, located St. Louis, MO, along with its subsidiaries, is a worldwide provider of agricultural products for farmers. Monsanto Company reported in 2007 Total Revenue of $8.349billion, in 2008 $11.365billion, and in 2009 $11.724billion. Its Net income rose over the same time period from $993million in 2007, to $2.007billion in 2008, and $2.098billion in 2009. According to the complaint the plaintiff alleges that Monsanto Company and certain of its officers and executives violated the Exchange Act by failing between January 7, 2009 and May 27, 2010, to disclose material adverse facts about its true financial condition, business and prospects.
Then on May 27, 2010, Monsanto 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. Monsanto 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, so the lawsuit, Monsanto’s stock price fell from a price of $52.66 prior to the announcement to close at $50.27 on extremely heavy volume. Shares of Monsanto Company (MON) traded recently at $57.91 per share, down from its 52weekHigh of $87.28 per share.


