SAN DIEGO & ATHENS, Greece--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed against Diana Containerships, Inc. (NasdaqGS: DCIX). The complaint is brought on behalf of all purchasers of Diana Containerships securities between January 26, 2017 and October 3, 2017, for alleged violations of the Securities Exchange Act of 1934 by Diana's officers and directors. Diana Containerships, through its subsidiaries, operates in the seaborne transportation industry in Greece.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/diana-containerships-inc
Diana Containerships Accused of Engaging in Reverse Split Share Issuance Scheme
According to the complaint, Diana Containership's registration statement filed on January 26, 2017 represented a critical step in Diana Containership officials' scheme to issue more than 100 times the number of shares outstanding as of the date of the registration statement, which would dilute the interest of existing shareholders and render their shares worthless. Through a series of stock issuances and reversals, Diana Containership officials enriched themselves at the expense of Diana Containership's shareholders in order to provide Diana Containership with financing that benefitted the company's Chief Executive Officer, Symeon P. Palios and his related companies and family members, and otherwise funnel money to company insiders. By October 3, 2017, Diana Containership's stock declined to close at $0.47 per share, with a market capitalization of less than one million dollars, despite having raised millions of dollars from investors since January 2017.
Diana Containerships Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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