Monsanto Company Long Term Investor Files Lawsuit
A current Monsanto investor filed a lawsuit against certain members of the board of directors of Monsanto alleging breaches of fiduciary duty. This lawsuit follows a previous lawsuit by another Monsanto investor on behalf of purchasers of the common stock of Monsanto Company 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. According to the complaint filed on behalf of purchasers of the common stock of Monsanto Company between January 7, 2009 and May 27, 2010, 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 $54.35 per share, down from its 52weekHigh of $87.06 per share and almost $140 per share during 2008.


