Diana Containerships Inc.
- Company Name
- Diana Containerships Inc.
- Stock Symbol
- Class Period
- January 26, 2017 to October 3, 2017
- Motion Deadline
- December 22, 2017
- Eastern District of New York
On October 23, 2017, Robbins Geller Rudman & Dowd LLP filed a complaint alleging violations of the federal securities laws by Diana Containerships Inc. and certain of its officers and/or directors. The class action was commenced in the United States District Court for the Eastern District of New York on behalf of purchasers of Diana common stock between January 26, 2017 and October 3, 2017 (the “Class Period”).
OBBINS GELLER RUDMAN & DOWD LLP FILES CLASS ACTION SUIT AGAINST DIANA CONTAINERSHIPS INC.
San Diego – October 23, 2017 – Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/diana/) today announced that a class action has been commenced on behalf of purchasers of Diana Containerships Inc. (“Diana”) (NASDAQ:DCIX) common stock during the period between January 26, 2017 and October 3, 2017 (the “Class Period”). This action was filed in the Eastern District of New York and is captioned Robinson v. Diana Containerships Inc., et al., No. 17-6160.
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. If you are a member of this class, you can view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/diana/. Any member of the putative 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.
The complaint charges Diana, certain of the Company’s officers and/or directors and Kalani Investments Limited and certain of its affiliates (“Kalani”) with violations of the Securities Exchange Act of 1934. Diana is a global provider of shipping transportation services through its ownership of containerships.
The complaint alleges that during the Class Period, defendant Symeon P. Palios (“Palios”), the Company’s Chief Executive Officer and Chairman of the Board, caused Diana to engage in a series of manipulative share issuance/sales transactions with Kalani and related entities. The manipulative scheme worked as follows: Through his control of Diana, Palios caused Diana to sell its common shares and securities convertible into common shares to Kalani at a significant discount to market price and to file registration statements so that Kalani could resell these shares into the market. When Kalani’s sales of Diana stock caused the price of Diana stock to decline, the Company would reverse split the stock, causing a certain number of outstanding shares to be merged into a single share, thereby raising the price of Diana stock. Then Diana would again sell securities to Kalani and the same pattern of transactions would ensue. According to the complaint, defendants failed to disclose the true purpose of these transactions and the related stock issuances and reverses – to provide Diana with financing that benefited Palios and his related companies and family members and otherwise funnel money to Company insiders. As a result of defendants’ stock manipulation scheme, the complaint alleges that by October 3, 2017, Diana common stock, which traded at a price of more than $2,500 per share on an adjusted basis during the early part of the Class Period, was worth only $0.47 per share.
Plaintiff seeks to recover damages on behalf of all purchasers of Diana common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller is widely recognized as a leading law firm advising and representing U.S. and international investors in securities litigation and portfolio monitoring. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For the third consecutive year, the Firm ranked first in both the total amount recovered for investors and the number of shareholder class action recoveries in ISS's SCAS Top 50 Report. Robbins Geller attorneys have shaped the law in the areas of securities litigation and shareholder rights and have recovered tens of billions of dollars on behalf of the Firm’s clients. Robbins Geller not only secures recoveries for defrauded investors, it also implements significant corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit http://www.rgrdlaw.com for more information.