Below is the first part of an article posted by foodproductdesign.com. It reads.
VANCOUVER, British Columbia—A consolidated proposed class-action lawsuit filed in New York against GLG Life Tech Corp., the stevia extract supplier, and its top executives, has been dismissed.
The complaint had alleged violations of federal securities laws.
Central to the lawsuit was whether GLG had disclosed a declining relationship with its biggest customer, Cargill, Inc.
In 2008, GLG had announced a Strategic Alliance and Supply Agreement (SASA) with Cargill that noted GLG would function as Cargill’s exclusive Chinese supplier of stevia extract. The pact also stated Cargill would purchase at least 80% of its global stevia extract requirements from GLG for the first five years.
In February 2011, prior to a securities offering, GLG forecast “that a significant portion of our revenues over the next several years will continue to be derived from sales to Cargill pursuant to the SASA.” By March 31, 2011, plaintiffs alleged, GLG “repeatedly misled investors by failing to disclose the true nature of the current status and future prospects with Cargill”.
The company was accused of misleading the market about its relationship with Cargill through a Securities and Exchange Commission filing and statements from its executives, CEO Luke Zhang and president Brian Meadows.
Marc Primo Pulisci is a Los Angeles based attorney practicing with Initiative Legal Group. Marc Primo Pulisci has been practicing law for over 10 years. Find Marc on Marc Primo Twitter, Marc Primo Manta, Marc Primo Facebook, Marc Primo Squarespace, Marc Primo Dot Com, Marc Primo Pulisci Dot Com, Marc Primo Myspace, Marc Primo Pulisci Blog, Marc Primo WordPress, Marc Primo Blog