Kachmar v. Farmland Partners, Inc., et al 1:18-cv-01771 – On July 11, 2018, investors sued Farmland Partners, Inc. (Farmland Partners, FPI, or the Company) in United States District Court For The District of Colorado. Plaintiffs in the Farmland Partners Class Action Lawsuit (FPI Lawsuit) allege that they acquired Farmland Partners stock at artificially inflated prices between May 9, 2017, and July 10, 2018 (the “Class Period”). They are now seeking compensation for financial losses incurred upon public revelation of the Company’s alleged misconduct during that time. For more information about the Farmland Partners Lawsuit, please reach out to us today!

Summary of the Allegations

Company Background

Farmland Partners (NYSE:FPI) is a self-described “internally managed, publicly traded 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 website, the Company owned or had under contract, more than 166,000 acres in Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, South Carolina, South Dakota, Texas and Virginia as of May 9, 2018. More than 125 tenant farmers grow more than 30 commercial crops on those Farmland properties.

Summary of Facts

Farmland Partners and two of its senior officers and/or directors (the “individual Defendants”) now stand accused of deceiving investors by lying and withholding critical information about the Company’s business practices during the Class Period.

Specifically, they are accused of omitting truthful information about its revenue from SEC filings and related material. By knowingly or recklessly doing so, they allegedly caused Farmland Partners stock to trade at artificially inflated prices during the time in question.

The truth emerged on July 11, 2018, when Rota Fortune published online report in which it claimed the Company “artificially increased revenues by ‘making loans to related-party tenants who round-trip the cash back to FPI as rent’” The report also alleged that “310% of Farmland’s 2017 earnings could be fabricated.”

A closer look…

As alleged in the July 11 complaint, Farmland Partners repeatedly made false and misleading public statements during the Class Period.

For example, on a form filed with the SEC at the beginning of the Class Period, the Company stated in pertinent part: “The substantial quarter-over-quarter revenue increase is indicative of the growth we achieved in the last twelve months.”

Then, on a form filed with the SEC on July 20, 2017, the Company again stated in pertinent part: “We expect to recognize the majority of our participating revenue, with a positive impact on AFFO, in the second half of the year.”

Finally, on yet another form filed with the SEC on May 9, 2018, the Company said in relevant part: “The benefits of scale are clearly showing up in our first quarter’s financial results. We expect such benefits to increase even further as we progress through the year, largely due to the concentration of revenue recognition in the fourth quarter for some of our properties.”

Impact of the Alleged Fraud on Farmland Partners’ Stock Price and Market Capitalization

The following chart illustrates the stock price during the class period:

Actions You May Take

If you have purchased shares during the Class Period, you may join the class action as a lead plaintiff, remain a passive class member, or opt out of this litigation and pursue individual claims that may not be available to the class as a whole.

NOTE: The deadline to file for lead plaintiff in this class action is September 10, 2018. You must file an application to be appointed lead plaintiff prior to this deadline in order to be considered by the Court. Typically, the plaintiff or plaintiffs with the largest losses are appointed lead plaintiff.

In order to identify your potential exposure to the alleged fraud during the time in question, you may wish to perform an analysis of your transactions in Farmland Partners common stock using court approved loss calculation methods.

Recently Filed Cases

Listed below are recently filed securities class action cases being monitored by us, along with the class period and the deadline to file a motion to be appointed as the Lead Plaintiff in the action.  Please contact us if you would like an LK report for any of these cases:

About Us

Levi & Korsinsky is a leading securities litigation firm with a hard-earned reputation for protecting investors’ rights and recovering losses arising from fraud, mismanagement and corporate abuse.  With thirty attorneys and offices in New York, Connecticut, California and Washington D.C., the firm is able to litigate cases in various jurisdictions in the U.S., England, and in other international jurisdictions.

Levi & Korsinsky provides portfolio monitoring services for high-net worth investors and institutional clients.  Our firm also assists investors in evaluating whether to opt-out of large securities class actions to pursue individual claims.

For additional information about the FPI Lawsuit or other institutional services we provide, please contact us.