NEW YORK, Jan. 23, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed 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"), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the "Complaint").
The Complaint alleges that Defendants concealed from the investing public that: (i) Calavo failed to maintain an accurately valued contingent consideration pursuant to its acquisition of Renaissance Food Group, LLC; (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. As a result of Defendants' alleged false and misleading statements, the Company's stock traded at artificially inflated prices during the Class Period. According to the Complaint, 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 contingent consideration.
If you wish to serve as lead plaintiff, you must move the Court no later than March 23, 2015. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at firstname.lastname@example.org or email@example.com.
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Source:Gainey McKenna& Egleston