Robbins Umeda LLP Announces an Investigation of Imperial Sugar Co.
Robbins Umeda LLP, a shareholder rights litigation firm, has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Imperial Sugar Co. (NASDAQ: IPSU).
Robbins Umeda LLP’s investigation focuses on whether the directors and officers of Imperial Sugar harmed the company and investors by issuing improper statements about the condition and business prospects of the company. Beginning on December 29, 2010, Imperial Sugar’s fiduciaries allegedly misled investors by failing to disclose the company was experiencing a known reduction in customer demand for its products primarily due to competitors selling lower-priced products in Imperial Sugar’s markets. Further, the company’s Port Wentworth, Georgia refinery was experiencing ongoing operating defects that resulted in higher production costs and adversely impacted Imperial Sugar’s gross margins.
On August 5, 2011 Imperial Sugar filed with the U.S. Securities and Exchange Commission its Form 10-Q for the second quarter 2011, which revealed that the company’s sales volumes had declined by more than 40% from the same prior year period. In response to these and other revelations, shares of Imperial Sugar’s common stock plummeted nearly 60%, from $23.19 per share on August 4, 2011 to $9.44 on August 5, 2011.
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