IMPORTANT ANNOUNCEMENT: Wolf Haldenstein Adler Freeman & Herz LLP Announces That a Federal Securities Class Action Has Been F...
January 29 2015 - 6:05PM
Wolf Haldenstein Adler Freeman & Herz LLP announces that a
class action lawsuit has been commenced in the United States
District Court for the Central District of California on behalf of
all persons or entities that purchased the common stock of Calavo
Growers, Inc. ("Calavo" or the "Company") (Nasdaq:CVGW) between
March 5, 2012 and January 14, 2015, inclusive (the "Class Period").
Calavo shareholders may, no later than March 23, 2015, move the
Court for appointment as a lead plaintiff of the Class. Please
contact us immediately if you suffered significant losses in Calavo
on shares purchased within the Class Period at (800) 575-0735 or
email classmember@whafh.com.
The Complaint alleges that throughout the Class Period,
defendants made materially false and misleading statements, and
omitted materially adverse facts, about the Company's business,
operations and prospects. Specifically, the Complaint alleges that
the defendants failed to disclose the following: (1) Calavo failed
to maintain an accurately valued contingent consideration pursuant
to its acquisition of Renaissance Food Group, LLC; (2) Calavo
overstated its non-cash operating expenses; (3) the Company lacked
adequate internal controls over financial reporting; and (4) as a
result of the above, the Company's financial statements were
materially false and misleading at all relevant times. As a result
of defendants' alleged false and misleading statements, the
Company's stock traded at artificially inflated prices during the
Class Period.
On January 15, 2015, Calavo announced that it would record a
non-cash charge – which the Company would treat as an amortization
expense – totaling, over all periods, $88.9 million before tax
($54.0 million net of tax) related to the misstatement in its
treatment of the contingent consideration related to the
acquisition. As a result, Calavo will restate its previously issued
financial statements for the fiscal years ended October 31, 2012
and 2013 and the quarters therein, as well as the quarters ended
January 31, 2014, April 30, 2014, and July 31, 2014.
On this news, shares in Calavo fell almost 10%, closing at
$43.07 per share on January 15, 2015, on higher than trading
volume.
Wolf Haldenstein has extensive experience in the prosecution of
securities class actions and derivative litigation in state and
federal trial and appellate courts across the country. The firm has
over 70 attorneys in various practice areas; and offices in New
York, Chicago and San Diego. The reputation and expertise of this
firm in shareholder and other class litigation has been repeatedly
recognized by the courts, which have appointed it to major
positions in complex securities multi-district and consolidated
litigation.
If you wish to discuss this action or have any questions
regarding your rights and interests in this case, please
immediately contact Wolf Haldenstein Adler Freeman & Herz LLP
by telephone at (800) 575-0735, via e-mail at
classmember@whafh.com, or visit our website at www.whafh.com. All
e-mail correspondence should make reference to the "Calavo
investigation."
Attorney Advertising. Prior results do not guarantee or predict
a similar outcome.
CONTACT: Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan or Gregory Stone
Email: donovan@whafh.com, gstone@whafh.com
or classmember@whafh.com
Tel: (800) 575-0735 or (212) 545-4774
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