Lead Plaintiff Deadline 04/18/2023
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Middle District of Florida on behalf of those who acquired Alico, Inc. (“Alico” or the “Company”) (NASDAQ: ALCO) securities during the period from February 4, 2021 through December 13, 2022 (the “Class Period”). Investors have until April 18, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Alico is involved in various agribusiness activities and operations including fruit production, cattle ranching, sugarcane, sod, and forestry.
On December 6, 2022, Alico issued a press release announcing that the Company was postponing its year-end earnings call. Specifically, the press release stated that “additional time is required for completion of the audit of its financial results for the period ended September 30, 2022 by its independent registered public accounting firm.” On this news, the price of Alico shares declined by $3.06 per share, or approximately 10.40%, from $29.41 per share to close at $26.35 on December 6, 2022.
On December 13, 2022, Alico filed its 2022 10-K with the SEC, which stated that there were accounting errors in the financial statements from 2015 to 2019. This resulted in a cumulative reduction in the deferred tax liability of approximately $2,512,000 and a cumulative increase in the Retained Earnings of approximately $2,512,000. On this news, the price of Alico shares declined by $2.64 per share, or approximately 9.53%, from $27.69 per share to close at $25.05 on December 14, 2022.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) Alico had deficient disclosure controls and procedures and internal control over financial reporting; (ii) as a result, the Company had improperly calculated Alico’s deferred tax liabilities over a multi-year period; (iii) accordingly, the Company would likely be required to restate one or more of its previously issued financial statements; and (iv) the foregoing would impede the timely completion of the audit of the Company’s financial results in advance of its year-end earnings call.