Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Calavo Growers, Inc.
Oklahoma City, OK (January 30, 2015) – On January 20, 2015, a securities class action lawsuit was filed in the United States District Court for the Central District of California against Calavo Growers, Inc. (NASDAQ: CVGW) and certain of the officers and Board of Directors. The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is March 5, 2012 through January 14, 2015. More specifically, this litigation was filed allege, among other things, that the Company: (1) failed to maintain an accurately valued contingent consideration pursuant to its acquisition of Renaissance Food Group; (2) overstated its non-cash operating expenses; and (3) lacked adequate controls over financial reporting. On January 15, 2015, the Company announced that it will record a non-cash charge totaling $88.9 million before tax related to the misstatement in its treatment of contingent consideration. Upon this news, the Company’s stock declined closing at $43.07 per share.
Plaintiff seeks to recover damages on behalf of all Calavo Growers, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, March 23, 2015 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click hereto obtain an investor certification. Once complete, please email this form to firstname.lastname@example.org, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Fri, January 30, 2015
by Robin Hester