Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Calavo Growers, Inc.

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Jan 21, 2015, 05:48 ET

WILMINGTON, Del., Jan. 21, 2015 /PRNewswire/ -- Rigrodsky & Long, P.A.:

Do you, or did you, own shares of Calavo Growers, Inc. (NASDAQ GS: CVGW)?
Did you purchase your shares between March 5, 2012 and January 14, 2015, inclusive?
Did you lose money in your investment in Calavo Growers, Inc.?
Do you want to discuss your rights?

Rigrodsky & Long, P.A., including former Special Assistant United States Attorney, Timothy J. MacFall, announces that a complaint 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 GS: 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").

If you purchased shares of Calavo during the Class Period, or purchased shares prior to the Class Period and still hold Calavo, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 2 Righter Parkway, Suite 120, Wilmington, DE 19803 at (888) 969-4242; by e-mail to [email protected]; or at: http://www.rigrodskylong.com/investigations/calavo-growers-inc-cvgw.

Calavo is a global leader in the avocado industry and an expanding provider of value-added fresh food. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company's business, operations and prospects. Specifically, the Complaint alleges that the defendants concealed from the investing public that: (1) Calavo failed to maintain an accurately valued contingent consideration pursuant to its acquisition of Renaissance Food Group, LLC ("RFC"); (2) Calavo overstated its non-cash operating expenses; (3) the Company lacked adequate internal controls over financial reporting; and (4) 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.

On this news, shares in Calavo fell almost 10%, closing at $43.07 per share on January 15, 2015, on high trading volume.

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. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed 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.

While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.

Attorney advertising. Prior results do not guarantee a similar outcome.

CONTACT:

Rigrodsky & Long, P.A.
Timothy J. MacFall, Esquire
Peter Allocco
(888) 969-4242
(516) 683-3516
Fax: (302) 654-7530
[email protected]
http://www.rigrodskylong.com

SOURCE Rigrodsky & Long, P.A.