NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Diana Containerships, Inc. (“Diana” or the “Company”) (NASDAQ:DCIX) of the December 22, 2017 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Diana stock or options between January 26, 2017 and October 3, 2017 and would like to discuss your legal rights, click here: www.faruqilaw.com/DCIX. There is no cost or obligation to you.
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 email@example.com.
The lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of all those who purchased Diana common stock between January 26, 2017 and October 3, 2017 (the “Class Period”). The case, Robinson v. Diana Containerships Inc. et al, No. 2:17-cv-06160 was filed on October 23, 2017.
The lawsuit alleges that the Company and its executives violated federal securities laws by engaging in a series of manipulative share issuance/sales transactions with Kalani Investments Limited (“Kalani”) and related entities. The manipulative scheme was caused by the Company’s Chief Executive Officer and Chairman of the Board of Directors, Symeon P. Palios (“Palios”). Specifically, Palios caused Diana to sell its common shares and securities convertible into common shares to Kalani at a significant discount to market price and to file registration statements so that Kalani could resell these shares into the market. When Kalani’s sales of Diana stock caused the price of Diana stock to decline, the Company would reverse split the stock, causing a certain number of outstanding shares to be merged into a single share, and thereby raise the price of Diana stock. Then Diana would again sell securities to Kalani and the same pattern of transactions would ensue. At the same time that Diana was engaging in these transactions, the Company failed to disclose the true purpose of the transactions and related stock issuances and reverses – to provide Diana with financing that benefited Palios and his related companies and family members and otherwise funnel money to Company insiders.
As a result of the aforementioned allegations, the Company’s share price is down more than 99% since the start of the Class Period.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Diana’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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