Class action lawsuit against Calavo Growers

Glancy Binkow & Goldberg LLP, representing investors of Calavo Growers, Inc., has filed a class action lawsuit in the United States District Court for the Central District of California on behalf of a class (the “Class”) comprising purchasers of Calavo securities between March 5, 2012 and January 14, 2015, inclusive (the “Class Period”).

Calavo markets and distributes avocados, prepared avocados, and other perishable foods to food distributors, produce wholesalers, supermarkets, convenience stores and restaurants worldwide. The Complaint alleges that defendants made false and/or misleading statements and failed to disclose material adverse facts about the earn-out payments provided under an agreement for the acquisition of Renaissance Food Group, LLC, including that: (1) Calavo failed to maintain an accurately valued contingent consideration pursuant to its acquisition of Renaissance Food Group; (2) the Company overstated its non-cash operating expenses; (3) the Company lacked adequate internal controls over financial reporting; and (4), as a result of the foregoing, the Company’s financial statements were materially false and misleading at all relevant times.

On January 15, 2015 Calavo announced it will record a non-cash charge -- which the Company will treat as amortization expense -- totaling $88.9 million before tax ($54 million net of tax) related to the misstatement in its treatment of contingent consideration. Following this news, shares of Calavo dropped $4.72 per share, or more than 9%, to close at $43.07 per share on January 15, 2015.

For more information:
Lesley Portnoy
Glancy Binkow & Goldberg LLP
Tel: +1 (888) 773-9224
or +1 (310) 201-9150
Email: shareholders@glancylaw.com