Calavo Growers under investigation of wrongdoing
Investors who are current long term investors in Calavo Growers, Inc. shares, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
The investigation by a law firm for current long term investors in NASDAQ:CVGW stocks follows a lawsuit filed recently against Calavo Growers, Inc. over alleged securities laws violations. The investigation on behalf of current long term investors in NASDAQ:CVGW stocks, concerns whether certain Calavo Growers officers and directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the Central District of California the plaintiff alleges that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between March 5, 2012 and January 14, 2015 Defendants allegedly made false and/or misleading statements and/or failed to disclose that Calavo Growers, Inc failed to maintain an accurately valued contingent consideration pursuant to its acquisition of RFG, that Calavo Growers, Inc overstated its non-cash operating expenses, that Calavo Growers, Inc lacked adequate internal controls over financial reporting, and that as a result of the above, Calavo Growers, Inc’s financial statements were materially false and misleading at all relevant times.
On January 15, 2015, Calavo Growers, Inc. announced its fiscal 2014 fourth quarter and full year results. Calavo Growers, Inc. said that its Total Revenue climbed to $782.50 million for the 12 months period that ended on October 31, 2014 from $691.50 million for the 12 months period that ended on October 31, 2013 and that its respective Net Income increased from $17.3 million to $25.00 million. In addition On January 15, 2015, Calavo Growers announced that it will restate its previously issued financial statements for the fiscal years ended October 31, 2013 and 2012 and the quarters therein, as well as the quarters ended January 31, 2014, April 30, 2014, and July 31, 2014. The restatements are attributable to a misstatement in Calavo Grower’s treatment of contingent consideration in its acquisition of Renaissance Food Group, LLC in June 2011.Shares of Calavo Growers, Inc. declined from $48.30 per share on January 14, 2015, to as low as $43.00 per share on January 15, 2015, respectively $37.50 per share on January 16, 2015.
On March 23, 2015, NASDAQ:CVGW shares closed at $52.78 per share.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com