NEW YORK, March 5, 2004 (PRIMEZONE) -- Wolf Popper LLP has filed a securities class action in the United States District Court for the Northern District of Georgia, styled Vogel v. AGCO Corporation, et al., against AGCO Corporation ("AGCO" or the "Company") (NYSE:AG) and certain of its officers. The lawsuit was filed on behalf of all persons and entities who purchased the securities of AGCO from February 6, 2003 through and including February 5, 2004 (the "Class" and the "Class Period," respectively).
AGCO is primarily engaged in the manufacture and distribution of agricultural equipment and related replacement parts. The Company distributes most of its products through a combination of approximately 8,450 independent dealers and distributors, associates, and licensees. The Complaint charges that, during the Class Period, the Company violated the federal securities laws by issuing materially false and misleading quarterly and yearly financial statements. Specifically, AGCO violated generally accepted accounting principles, as well as its own stated revenue recognition policy, by engaging in "bill and hold" transactions, whereby the Company prematurely recognized revenue before the earnings process was complete. This had the effect of allowing the Company to improperly book and recognize sales at December 31, 2003 and 2002 of approximately $32.8 million and $29.9 million, respectively, thus artificially inflating AGCO's stock price to the detriment of Company shareholders.
On February 5, 2004, AGCO shocked investors when it issued a press release announcing that it was the subject of an informal SEC investigation into its "accounting for revenue recognition (particularly bill and hold transactions), sales and sales returns and allowances, plant and facility closing costs and reserves, and personal use of corporate aircraft." In response to this announcement, the Company's shares fell precipitously over 16%, or $3.10 per share, to close at $16.25 per share on extremely high trading volume.
Class members who desire to be appointed lead plaintiff in this action must file a motion with the court no later than April 6, 2004. If you purchased AGCO securities during the Class Period and would like to discuss this lawsuit, you may contact:
Michael A. Schwartz, Esq. Wolf Popper LLP 845 Third Avenue New York, NY 10022 Telephone: 212.759.4600 or toll free 877.370.7704 E-mail: irrep@wolfpopper.com Website: www.wolfpopper.com