HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages Agrify Corporation (AGFY) Investors to Contact Firm’s Attorneys, Firm Investigating Possible Securities Law Violations
SAN FRANCISCO, Dec. 20, 2021 (GLOBE NEWSWIRE) -- Hagens Berman urges Agrify Corporation (NASDAQ: AGFY) investors with significant losses to submit your losses now. The firm is investigating possible securities law violations and certain investors may have valuable claims.
Agrify Corporation. (AGFY) Investigation:
After its Jan. 2021 initial public offering, Agrify’s shares rose steadily on a slew of sales announcements to purported independent third party licensed commercial growers via new total turnkey partnerships (“TTK Partnerships”).
But Agrify’s statements concerning its TTK partnerships came into question on Dec. 16, 2021, when Bonitas Research released a report alleging that “Agrify created artificial demand for its product by financing undisclosed Company insiders to act as independent customers.”
Bonitas claims that it “found the majority of Agrify’s TTK Partnerships are either with undisclosed Company insiders or with unlicensed unproven operators.”
Bonitas also contends, “[T]he TTK Partnerships use Agrify’s balance sheet to finance the construction of the customer’s facility, equipment sales and installations, which suggests to us that Agrify’s recorded revenues are artificially inflated by loan balances from Agrify to TTK Partnership customers. Agrify accounted for its TTK Partnerships differently than previously disclosed accounting policies.”
Bonitas added, “TTK Partnerships were never mentioned in the Company’s S-1 or its 2020 10-K, which means Agrify’s new 2021 accounting policies have yet to be the subject of an audit.”
On this news, Agrify’s common stock price fell sharply during intraday trading on Dec. 16, 2021.
“We’re focused on investors’ losses and determining whether Agrify concealed related party transactions and inflated revenue,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Agrify Corporation and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Agrify Corporation should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email AGFY@hbsslaw.com.
About Hagens Berman
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Reed Kathrein, 844-916-0895