NEW YORK, Oct. 24, 2017 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Diana Containerships Inc. ("Diana" or the "Company") (NASDAQ:DCIX). Such investors are advised to contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888-476-6529, ext. 9980.
The investigation concerns whether Diana and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On January 26, 2017, Diana filed a shelf registration statement for the sale of $250 million worth of Company securities. Over the following eight months, Diana sold large volumes of its common shares and securities convertible into common shares to Kalani Investments Limited ("Kalani"), a British Virgin Islands entity, at a significant discount to market price. Kalani subsequently resold these shares into the market. As Diana's share price declined following Kalani's sales, the Company executed a series of reverse stock splits that had the effect of raising its share price. By October 3, 2017, the price of Diana common stock had declined to close at $0.47 per share on an unadjusted basis. At this share price, Diana had a market capitalization of less than one million dollars, despite having raised millions of dollars from investors since January 2017.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
