Robbins Umeda LLP Announces an Investigation of Primo Water Corporation
Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Primo Water Corporation (NASDAQ: PRMW). Concerned shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Gregory E. Del Gaizo at (800) 350-6003.
Robbins Umeda LLP’s investigation focuses on whether officials at Primo Water harmed the company by breaching their fiduciary duties to shareholders. In particular, the firm is investigating allegations that certain officers and directors at Primo Water issued improper statements to investors designed to artificially inflate the value of the company. Beginning on November 4, 2010, officers at the company issued allegedly positive financial statements to investors that allegedly failed to reflect adverse material facts about the robustness of demand for the company’s signature products and the true nature of Primo Water’s relationship with its primary customers.
In stark contrast to the positive statements by officials at the company, Primo Water issued a press release on August 10, 2011, showcasing disappointing financial results for the second quarter of 2011. The press release also contained the acknowledgement that the company would be forced to revise downward its financial projections for the third and fourth quarters of 2011. Since these facts have emerged, the value of Primo Water stock has been negatively impacted. On August 10, 2010, shares of Primo Water collapsed from $13.92 per share on August 9, 2011 to close at just $5.40 per share on August 10, 2011 – a one day decline of $8.52 per share, or 61% – on extremely heavy volume.