SAN DIEGO and LOS ANGELES, April 29, 2015 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of Cadiz Inc. (NASDAQGM: CDZI) has filed a federal securities fraud class action complaint in the U.S. District Court for the Central District of California. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between May 10, 2014 and April 21, 2015.
View this information on the law firm's Shareholder Rights Blog:
Cadiz Misrepresents Its Business Practices
According to the complaint, defendants made materially false and misleading statements regarding the company's primary project, the Cadiz Valley Water Conservation, Recovery, and Storage Project. Specifically, the complaint alleges that Cadiz misrepresented the chances that the company would gain federal regulatory approval for third party right-of-way along portions of the Arizona & California Railroad Company's rail lines. Approval of right-of-way use by the U.S. Department of the Interior's Bureau of Land Management was necessary for the success of the project.
Cadiz stock declined $1.05 per share, or nearly 11%, to close at $8.65 per share on April 22, 2015, following the publication of a Seeking Alpha article that revealed the company acknowledged in a July 12, 2013 letter that the BLM previously determined that the project does meet the "railroad purpose" test established by the BLM. As a result, the project was deemed unviable.
Cadiz Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP