US-based rice processor NutraCea has had a class action lawsuit filed against it for issuing "inaccurate" financial statements to the public.

The Rosen Law Firm has filed the lawsuit on behalf of all purchasers of NutraCea common stock for the period from 14 August 2007 to 23 February this year.

The complaint charges NutraCea and a number of its officers and directors with violations of Section 10(b) and Section 20(a) of the Securities Exchange Act of 1934 by issuing "materially inaccurate financial statements to the investing public".

On 23 February this year, NutraCea announced that it would be restating revenue for the quarterly periods from the second quarter of 2007 through the fourth quarter of 2008 and for the fiscal year ended 31 December 2007.

The restatement is due to NutraCea's "improper recognition" of revenue on two transactions in 2007, Rosen said.

Of the US$22.2m of revenue reported for 2007, NutraCea estimates that $4.6m will be reversed. News of the pending restatement caused NutraCea's stock price to fall, damaging investors.

The case is currently pending in the US District Court for the District of Arizona.