PHILADELPHIA, Oct. 26, 2017 /PRNewswire/ -- Diana
Containerships, Inc. ("Diana" or "the Company") (NASDAQ:
DCIX) and two of its officers have been accused of federal
securities law violations in a class action lawsuit filed on behalf
of purchasers of Diana common stock during the period between
January 26, 2017 and October 3, 2017 (the "Class Period").
The lawsuit also names as defendants Kalani Investments Limited
and Marc Bistricher. The action was filed in the Eastern District
of New York and is captioned
Robinson v. Diana Containerships Inc., et al., No.
17-cv-6160. The deadline for Diana class members to file a lead
plaintiff motion with the Court is December
22, 2017.
If you wish to discuss this action or have any questions
concerning this notice or your rights or interests, please contact
the investigating attorney, Michael
Dell'Angelo of Berger
Montague, at 800-424-6690 or 215-875-3080, via e-mail at
mdellangelo@bm.net or at
https://www.bergermontague.com/contact-us/submit-a-claim.
Any member of the proposed class may move the Court on or before
December 22, 2017, to serve as lead
plaintiff through counsel of their choice, or may choose to do
nothing and remain an absent class member.
The complaint alleges that during the Class Period, defendant
Symeon P. Palios ("Palios"), the
Company's CEO and Chairman of the Board, caused Diana to engage in
a series of manipulative share issuance/sales transactions with
Kalani, which is allegedly controlled by Bistricher and related
entities.
The manipulative scheme worked as follows: Through his control
of Diana, Palios caused Diana to sell its common shares and
securities convertible into common shares to Kalani at a
significant discount to market price. In addition, Palios caused
Diana 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, thereby raising the price
of Diana stock. Then Diana would again sell securities to
Kalani, and the same pattern of transactions would ensue. The
complaint alleges that the defendants failed to disclose the true
purpose of these transactions and the 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 alleged stock manipulation scheme, the
complaint alleges that by October 3,
2017, Diana common stock, which traded at a price of more
than $2,500 per share on an adjusted
basis during the early part of the Class Period, was worth only
$0.47 per share.
Kalani and Bistricher have also been accused of federal
securities violations in two separate pending class action lawsuits
filed on behalf of purchasers of Top Ships Inc. (NASDAQ: TOPS) and
DryShips Inc. (NASDAQ: DRYS), alleging similar schemes.
Berger & Montague, P.C. is a nationally recognized
full-service plaintiffs' class action law firm specializing in
securities, antitrust and other complex litigation on behalf of
institutions and other investor and individual
plaintiffs. Attorney advertising. Prior results do not
guarantee similar outcomes.
Contact:
Michael
Dell'Angelo
Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103
215-875-3080
mdellangelo@bm.net
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SOURCE Berger & Montague, P.C.