Farmer Brothers Co. (NASDAQ:FARM) Investor Investigation of of possible Breaches of Fiduciary Duties

If you are a current long-term stockholder of shares of Farmer Brothers Co. (NASDAQ:FARM), you have certain options and you should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this investigation, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Farmer Brothers
Affected Securities: 
NASDAQ: FARM

November 4, 2013 (Shareholders Foundation) - An investigation on behalf of investors who purchased shares of Farmer Brothers Co. (NASDAQ:FARM) was announced concerning whether certain Farmer Brothers officers and directors possibly breached their fiduciary duties in connection with certain statements.

The investigation by a law firm concerns whether certain Farmer Brothers officers and directors breached their fiduciary duties in connection with their conduct in seeking shareholders’ approval for the Amended and Restated 2007 Long-Term Incentive Plan.

In the Proxy Statement filed by Farmer Brothers Co. with the Securities and Exchange Commission the Board of Directors recommends that Farmer Brothers’ shareholders vote to approve the Amended and Restated 2007 Long-Term Incentive Plan, which amends and restates the existing Farmer Brothers Co. 2007 Omnibus Plan. This would, among other things, increase the authorized number of shares issuable under the plan by up to 1,375,000 shares.

According to the investigation the issuance of the additional shares could have a severe dilutive effect on the shares of Farmer Brothers Co.

Farmer Brothers Co. reported that its Total Revenue rose from $463.94 million for the 12 months period that ended on June 30, 2011 to $509.96 million for the 12 months period that ended on June 30, 2013 and that its respective Net Loss declined from $52.03 million to $8.46 million.

Shares of Farmer Brothers Co. (NASDAQ:FARM) grew from $4.86 per share in November 2011 to as high as $18.40 on October 31, 2013.

On Nov. 4, 2013, NASDAQ:FARM closed at $18.03 per share.