Calavo Growers, Inc. is an international company that packages and distributes avocados, fruits, and prepared food to restaurants, stores, and individual customers worldwide.

According to the law firm press release, the lawsuit alleges that the Company made false and/or misleading statements and/or failed to disclose that: (i) the Company failed to maintain accurately valued contingent consideration in connection with an acquisition; (ii) the Company overstated its non-cash operating expenses; (iii) the Company lacked adequate internal controls over financial reporting; and (iv) as a result of the above, the Company’s financial statements were materially false and misleading at all relevant times.

On January 15, 2015, the Company announced it will record a non-cash charge which the Company will now treat as an amortization expense totaling $88.9 million before tax related to the misstatement in its treatment of contingent consideration. On this news, shares of Calavo Growers fell $4.72 per share or over 9% to close at $43.07 per share on January 15, 2015, damaging investors.

On October 6, 2015, the Court issued an Order dismissing the first amended Complaint with leave to amend.

On February 24, 2016, the Court issued an Order dismissing the second amended Complaint with prejudice. Lead Plaintiffs filed a Notice appealing this decision on March 17. On January 10, 2018, the Court of Appeals affirmed the District Court's decision to dismiss the case.