NEW YORK, Feb. 10, 2015 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that a class action lawsuit has been filed in United States District Court for the Central District of California on behalf of purchasers of Calavo Growers, Inc. ("Calavo" or the "Company") (Nasdaq:CVGW) common stock during the period between March 5, 2012 and January 15, 2015 (the "Class Period").
If you purchased Calavo shares during the Class Period, you may, no later than March 23, 2015, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any member of the purported 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.
If you want more information about the Calavo Shareholder Class Action, contact Morgan & Morgan at 1(800) 732-5200 or email info@morgansecuritieslaw.com
The complaint charges Calavo and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Calavo markets and distributes avocados, prepared avocados, and other perishable foods to food distributors, produce wholesalers, supermarkets, convenience stores, and restaurants worldwide.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, and failed to disclose material adverse facts about the earn-out payments provided under the RFG Acquisition Agreement. Specifically, during the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Calavo failed to maintain an accurately valued contingent consideration pursuant to its acquisition of RFG; (ii) Calavo 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 Calavo announced it will record a non-cash charge which the Company will now treat as 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 contingent consideration.
Following this news, shares of Calavo fell $4.72 per share, or over 9%, to close at $43.07 per share on January 15, 2015.
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