The shuman law firm investigates calavo growers, inc.

Boulder, colo.--(business wire)--the shuman law firm announces that it is investigating potential claims against certain officers and directors of calavo growers, inc. (“calavo” or the “company”) (nasdaq: cvgw). calavo is a santa paula, ca-based company that markets and distributes avocados, prepared avocados and other perishable foods. the firm’s investigation relates to allegations raised in a class action lawsuit against the company and its senior officers filed in u.s. district court for the central district of california. the complaint alleges that the defendants: (a) failed to maintain an accurately valued contingent consideration pursuant to its acquisition of renaissance food group, llc; and (b) overstated the company’s non-cash operating expenses. the complaint alleges that calavo lacked adequate internal controls over financial reporting and the company's financial statements were materially false and misleading. on january 15, 2015, calavo announced it will record a non-cash charge which the company will treat as amortization expense totaling, over all periods, $88.9 million before tax ($54.0 million net of tax) in connection with the misstatement in calavo’s treatment of contingent consideration. following this news, calavo’s stock price fell almost 16% over the next two trading days. if you currently own calavo common stock and are interested in discussing your rights, or have information relating to this investigation, please contact kip b. shuman or rusty e. glenn toll-free at (866) 569-4531or email mr. shuman at kip@shumanlawfirm.com or email mr. glenn at rusty@shumanlawfirm.com. the shuman law firm represents investors throughout the nation, concentrating its practice in stockholder litigation.
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