Diana Containerships, Inc.

Robbins Arroyo LLP: Diana Containerships, Inc. (DCIX) Misled Shareholders According to a Recently Filed Class Action

Robbins Arroyo LLP announces that a class action complaint was filed against Diana Containerships, Inc. (NasdaqGS: DCIX). The complaint is brought on behalf of all purchasers of Diana Containerships securities between January 26, 2017 and October 3, 2017, for alleged violations of the Securities Exchange Act of 1934 by Diana’s officers and directors. Diana Containerships, through its subsidiaries, operates in the seaborne transportation industry in Greece.

Diana Containerships Accused of Engaging in Reverse Split Share Issuance Scheme

According to the complaint, Diana Containership’s 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.

Diana Containerships Shareholders Have Legal Options

Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.

 

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