PGG Wrightson vindicated as Agria's class action suit dismissed

PGG Wrightson Ltd has been vindicated in downplaying the risks from new cornerstone shareholder Agria’s legal battles in the U.S., after a court dismissed a class action lawsuit relating to its initial public offering. 

The biggest shareholder in Wrightson said the U.S. District Court for the South District of New York ruled in favour of Agria and its underwriter over allegations it failed to disclose all pertinent information at the time of its IPO in 2007.  Wrightson stood by the Chinese agriculture and seed research company when details of the law suit emerged, saying it had found “no issues of concern” when conducting due diligence.  

Agria was confirmed as the biggest shareholder in the Christchurch-based rural services provider last month after Wrightson raised some $250 million through selling shares and notes in a bid to slash its debt levels.  

Wrightson shares gained 3.5% to 60 cents on the NZX today and have declined 47% this year.

Businesswire.co.nz

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Printable version

Related News

PGG Wrightson to open Beijing office
Former PGG Wrightson boss's $3 mln golden handshake
PGG Wrighton reports loss but is optimistic
Daily ShareChat: PGG Wrightson
Daily ShareChat: PGG Wrightson
PGG Wrightson taps banks for new funding
PGG Wrightson's Miles resigns over company's future
PGG Wrightson ditched by Farming Systems
Daily ShareChat: PGG Wrightson
Wrightson returns to profit

Get quotes for PGG Wrightson Limited Ordinary Shares (PGW)

NZX Annoucements for PGW