A lawsuit was filed on behalf of investors in Diana Containerships Inc (NASDAQ:DCIX) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 11/15/2017 -- An investor in NASDAQ:DCIX shares filed a lawsuit against Diana Containerships Inc over alleged violations of Federal Securities Laws.
Investors who purchased shares of Diana Containerships Inc (NASDAQ:DCIX) should contact the Shareholders Foundation at email@example.com or call 858-779-1554.
The plaintiff alleges that Diana Containerships Inc, certain of the Company's officers and/or directors and Kalani Investments Limited and certain of its affiliates violated Federal Securities Laws. More specifically, the plaintiff claims that between January 26, 2017 and October 3, 2017, the defendant Symeon P. Palios, the Company's Chief Executive Officer and Chairman of the Board, caused Diana Containerships Inc to engage in a series of manipulative share issuance/sales transactions with Kalani Investments Limited and related entities.
The plaintiff says that the manipulative scheme worked as follows: Through his control of Diana Containerships Inc,, Palios caused Diana Containerships Inc, 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 Containerships Inc stock caused the price of Diana Containerships Inc, 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 Containerships Inc stock. Then Diana Containerships Inc 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 Containerships Inc 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 Containerships Inc, common stock, which traded at a price of more than $2,500 per share on an adjusted basis during the early part en January 26, 2017 and October 3, 2017, was worth only $0.47 per share.
Those who purchased shares of Diana Containerships Inc (NASDAQ:DCIX) have certain options and should contact the Shareholders Foundation.
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