Shareholder Alert: Bronstein, Gewirtz & Grossman, LLC Reminds Investors of Class Action against Calavo Growers, Inc. and Lead Plaintiff Deadline of March 23, 2015.
NEW YORK, March 17, 2015 /PRNewswire/ -- Bronstein, Gewirtz & Grossman, LLC reminds investors that a securities class action has been filed in the United States District Court for the Central District of California on behalf of those who purchased shares of Calavo Growers, Inc. ("Calavo" or the "Company") (NasdaqGS: CVGW), during the period between March 5, 2012 and January 14, 2015 inclusive. (the "Class Period").
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, and failed to disclose material adverse facts about the earn-out payments provided under the RFG Acquisition Agreement. Specifically, during the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Calavo failed to maintain an accurately valued contingent consideration pursuant to its acquisition of RFG; (ii) Calavo overstated its non-cash operating expenses; (iii) the Company lacked adequate internal controls over financial reporting; and (iv) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On January 15, 2015 Calavo announced it will record a non-cash charge which the Company will now treat as amortization expense totaling, over all periods, $88.9 million before tax ($54.0 million net of tax) related to the misstatement in its treatment of contingent consideration.
On the news, shares of Calavo fell $4.72 per share, or over 9%, to close at $43.07 per share on January 15, 2015.
Plaintiff seeks to recover damages on behalf of all shareholders who purchased shares of Calavo during the Class Period described above.
No Class has yet been certified in the above action. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Peretz Bronstein, Esq. or his Investor Relations Coordinator Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email [email protected]. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. If you suffered a loss in Calavo you have until March 23, 2015 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Eitan Kimelman 212-697-6484
[email protected]
SOURCE Bronstein, Gewirtz & Grossman, LLC
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