Amira Nature Foods, the 100-year-old, Dubai-based packaged rice exporter, is relying on FTI Consulting as it reels from a damaging report by Prescience Point Research Group alleging phony revenue and export figures.
Amira on Feb. 10 blasted the research report as containing "false, factually inaccurate and fictional content obtained from previously released false statements, that have been repacked and distributed with malafide intention." The company said it intends to "pursue this matter legally."
Prescient Point's 40-page report, titled "Fraudcap Redux," dubs the company a "collection of lies with leverage on top." The report alleges Amira "fabricated" its financials and overstated its Basmati rice sales.
FTI managing director Steven Balet is advising Amira on the PR front during the crisis.
Amira went public in October 2012 on the New York Stock Exchange and the shareholder suit filed this week alleges the company inflated its revenue to boost that stock offering. Revenue for the year ending March 31, 2014 were up 32.3% to $547.3M.
Shares of the company are trading around a 52-week low of $9 in the wake of the Prescient report.
Oppenheimer, which started coverage of Amira in January, said after the Prescient report that the fallen share price undervalues the company and backed its shares as a long-term investment.