SHAREHOLDER ALERT: Berger Montague Announces Investigation of Diana Containerships, Inc. (DCIX)
October 26, 2017. PHILADELPHIA — Diana Containerships, Inc. (“Diana” or “the Company”)(NASDAQ:DCIX) and two of its officers have been accused of federal securities law violations in a class action lawsuit filed on behalf of purchasers of Diana common stock during the period between January 26, 2017 and October 3, 2017 (the “Class Period”).
The lawsuit also names as defendants Kalani Investments Limited and Marc Bistricher. The action was filed in the Eastern District of New York and is captioned Robinson v. Diana Containerships Inc., et al., No. 17-cv-6160. The deadline for Diana class members to file a lead plaintiff motion with the Court is December 22, 2017.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact the investigating attorney, Michael Dell’Angelo of Berger Montague, at 800-424-6690 or 215-875-3080, via e-mail at firstname.lastname@example.org or at https://www.bergermontague.com/contact-us/submit-a-claim.
Any member of the proposed class may move the Court on or before December 22, 2017, to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint alleges that during the Class Period, defendant Symeon P. Palios (“Palios”), the Company’s CEO and Chairman of the Board, caused Diana to engage in a series of manipulative share issuance/sales transactions with Kalani, which is allegedly controlled by Bistricher 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. In addition, Palios caused Diana 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. The complaint alleges that the 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 the alleged 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.
Kalani and Bistricher have also been accused of federal securities violations in two separate pending class action lawsuits filed on behalf of purchasers of Top Ships Inc. (NASDAQ:TOPS) and DryShips Inc. (NASDAQ: DRYS), alleging similar schemes.
Berger Montague is a nationally recognized full-service plaintiffs’ class action law firm specializing in securities, antitrust and other complex litigation on behalf of institutions and other investor and individual plaintiffs. Attorney advertising. Prior results do not guarantee similar outcomes.