NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Calavo Growers, Inc. (“Calavo” or the “Company”) (NASDAQ:CVGW) of the March 23, 2015 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against Calavo and certain officers of the Company.
A complaint has been filed in the United States District Court for the Central District of California on behalf of all persons who purchased or otherwise acquired Calavo securities between March 5, 2012 and January 14, 2015 (the “Class Period”).
The complaint alleges that the Company and its executives violated federal securities laws with respect to its statements concerning its business, operations, and prospects.
Specifically, the action alleges that during the Class Period, Calavo misrepresented and/or failed to disclose that: (i) the Company did not maintain an accurately valued contingent consideration in connection with its acquisition of Renaissance Food Group (“RFG”); (ii) Calavo’s non-cash operating expenses were overstated; and (iii) the Company did not employ adequate internal controls over financial reporting.
On January 15, 2015, Calavo announced it will record a non-cash charge which the Company will treat as amortization expense totaling, over all periods, $88.9 million before tax ($54.0 million net of tax) in connection with the misstatement in Calavo’s treatment of contingent consideration.
Following this news, the price of the Company’s stock declined by $4.72 per share, or over 9%, to close on January 15, 2015 at $43.07 per share.
Request more information now by clicking here: www.faruqilaw.com/CVGW. There is no cost or obligation to you.
If you invested in Calavo common stock or options between March 5, 2012 and January 14, 2015 and would like to discuss your legal rights, visit www.faruqilaw.com/CVGW. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding Calavo’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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