The Associated Press reports that the 8th Circuit has overturned the district court’s dismissal of the securities class action against ConAgra Foods, Inc. Plaintiffs allege that ConAgra overstated the earnings of its subsidiary, UAP, by recognizing sales when the delivery of the goods had not yet taken place. As a result, ConAgra prematurely recognized revenue in the years 1998 through 2000. The case was originally filed in the D. of Neb.
The court’s opinion can be found here and contains an interesting discussion of materiality. More to follow.
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