Robbins LLP: Cadiz Inc. (CDZI) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that an investor of Cadiz Inc. (NASDAQGM: CDZI) has filed a federal securities fraud class action complaint in the U.S. District Court for the Central District of California. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between May 10, 2014 and April 21, 2015.
Cadiz Misrepresents Its Business Practices
According to the complaint, defendants made materially false and misleading statements regarding the company’s primary project, the Cadiz Valley Water Conservation, Recovery, and Storage Project. Specifically, the complaint alleges that Cadiz misrepresented the chances that the company would gain federal regulatory approval for third party right-of-way along portions of the Arizona & California Railroad Company’s rail lines. Approval of right-of-way use by the U.S. Department of the Interior’s Bureau of Land Management was necessary for the success of the project.
Cadiz stock declined $1.05 per share, or nearly 11%, to close at $8.65 per share on April 22, 2015, following the publication of a Seeking Alpha article that revealed the company acknowledged in a July 12, 2013 letter that the BLM previously determined that the project does meet the “railroad purpose” test established by the BLM. As a result, the project was deemed unviable.
Cadiz Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.