On or around 02/01/2018 (Other)
Filing Date: January 20, 2015
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.
Company & Securities Information
Defendant: Calavo Growers, Inc.
Sector: Consumer Non-Cyclical
Headquarters: United States
Ticker Symbol: CVGW
Company Market: NASDAQ
Market Status: Public (Listed)
About the Company & Securities Data
"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.
In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
First Identified Complaint
Sherif E. El Dabe, et al. v. Calavo Growers, Inc., et al.