Trial Ordered in Suit Against ConAgra
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A federal appeals court ordered a trial in a lawsuit filed on behalf of shareholders against ConAgra Foods Inc. over alleged fictitious sales and misreported earnings at a subsidiary.
Omaha-based ConAgra announced in May 2001 that accounting problems at its subsidiary United Agri Products would result in $120 million in lower earnings for 1998 through 2000.
United Agri Products, based in Greeley, Colo., supplies fertilizer, seed and other farm products.
The suit alleges that ConAgra and several executives and directors violated federal securities laws by misrepresenting the company’s financial performance to inflate its stock value.
The U.S. 8th Circuit Court of Appeals said that U.S. District Judge Richard Kopf was wrong to dismiss the lawsuit.
ConAgra shares fell 14 cents to $23.60 on the NYSE.
From Associated Press
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