NEW YORK - Bragar Eagel & Squire, P.C. is currently investigating potential legal claims against two NASDAQ-listed companies, Waldencast Plc (NASDAQ: WALD) and Calavo Growers , Inc. (NASDAQ: NASDAQ:CVGW). The investigations are focused on whether these companies may have breached federal securities laws or engaged in other illegal business activities.
Waldencast Plc, which faced a share price drop of approximately 6.20% on April 25, 2023, after announcing a delay in filing its annual report for 2022, is under scrutiny for accounting issues related to sales of Obagi products in Vietnam. The delay and subsequent review of the company's financial statements for the year-end 2022 prompted this investigation.
On the other hand, Calavo Growers, Inc. disclosed on January 31, 2024, that certain operations in Mexico could potentially raise issues under the Foreign Corrupt Practices Act (FCPA), which led to a decline in the company's stock price. The Special Committee of the Board of Directors is examining these matters to determine the extent of the potential issues.
Bragar Eagel & Squire, P.C. represents both individual and institutional investors in various legal proceedings, including securities and commercial litigation. The firm operates across the United States, with offices in New York, California, and South Carolina.
The outcomes of these investigations may have implications for the shareholder rights and the financial standing of the companies involved. Investors are closely monitoring these developments, as the findings could potentially impact the companies' future business practices and market performance.
The information in this article is based on a press release statement from Bragar Eagel & Squire, P.C.
InvestingPro Insights
As Calavo Growers, Inc. (NASDAQ: CVGW) faces legal scrutiny, investors are paying close attention to the company's financial health and future prospects. According to real-time data from InvestingPro, Calavo's market capitalization stands at $514.91 million, reflecting the size and scale of the business in the current market. Despite a challenging period, the company has demonstrated resilience with a strong return over the last three months, posting an 18.28% price total return, which may interest investors looking for recent positive performance.
InvestingPro Tips highlight that while Calavo has not been profitable over the last twelve months, analysts are optimistic about the company's potential to turn around, predicting profitability for the current year. This forecast for growth in net income could signal a shift in the company's trajectory, offering a glimmer of hope amidst the ongoing investigations. Additionally, Calavo has maintained a consistent dividend payout for 23 consecutive years, yielding 1.38%, which could be a reassuring factor for income-focused shareholders.
Investors considering Calavo's stock may find further detailed analysis and additional InvestingPro Tips at https://www.investing.com/pro/CVGW. For those looking to delve deeper into the financial metrics and expert insights, use the coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription. With a total of 11 additional tips listed in InvestingPro, subscribers can gain a comprehensive understanding of Calavo's financial standing and make more informed investment decisions.
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