Diana Containerships, Inc.
Diana Containerships Accused of Engaging in Reverse Split Share Issuance Scheme
According to the complaint, Diana Containership’s (NasdaqGS: DCIX) registration statement filed on January 26, 2017 represented a critical step in Diana Containership officials’ scheme to issue more than 100 times the number of shares outstanding as of the date of the registration statement, which would dilute the interest of existing shareholders and render their shares worthless. Through a series of stock issuances and reversals, Diana Containership officials enriched themselves at the expense of Diana Containership’s shareholders in order to provide Diana Containership with financing that benefitted the company’s Chief Executive Officer, Symeon P. Palios and his related companies and family members, and otherwise funnel money to company insiders. By October 3, 2017, Diana Containership’s stock declined to close at $0.47 per share, with a market capitalization of less than one million dollars, despite having raised millions of dollars from investors since January 2017.