NEW YORK--(BUSINESS WIRE)-- Scott+Scott, Attorneys at Law, LLP (“Scott+Scott”), a national securities and consumer rights litigation firm, is notifying investors that a class action lawsuit has been filed against Diana Containerships, Inc. (NASDAQ: DCIX) (“Diana” or the “Company”) and other defendants, related to alleged violations of federal securities laws. If you are a Diana shareholder who purchased stock between January 26, 2017 and October 3, 2017 (the “Class Period”), you are encouraged to contact Scott+Scott for additional information. Investors have until December 22, 2017, to move for lead plaintiff.
Diana owns containerships that it puts out to charter on the spot market, or on short-term or long-term charters.
The lawsuit concerns a “series of manipulative share issuance/sales transactions” with Kalani Investments Ltd, a British Virgin Islands firm, and related entities (“Kalani”).
On January 26, 2017, Diana filed a shelf registration statement for the sale of $250 million of Company securities. Diana then sold large volumes of its common shares (and securities convertible into common shares) to Kalani at a significant discount to the market price and Kalani resold those shares to the market. In January 2017, Diana stock was trading at a Class Period high of over $2,500 per share on an adjusted basis.
As Diana’s share price declined following Kalani’s sales, the Company executed a series of reverse stock splits that had the effect of raising its share price while diluting existing shareholders and eliminating 99 percent of the value of outstanding common stock. By October 3, 2017, the price of Diana common stock had declined to approximately $0.47 per share.
What You Can Do
If you purchased shares of Diana between January 26, 2017 and October 3, 2017, inclusive, or if you have questions about this notice or your legal rights, please contact attorney Joe Pettigrew at (844) 818-6982, or at firstname.lastname@example.org.
About Scott+Scott, Attorneys at Law, LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California and Ohio.
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Source: Scott+Scott, Attorneys at Law, LLP