Kalani Hit With Lawsuit on Top Ships
An investigation has been launched on behalf of investors of Top Ships into the company’s dealings with Kalani Investment.
Rosen Law Firm, a global investor rights law firm, announces the filing of a class action lawsuit on behalf of purchasers of the securities of Top Ships from January 17, 2017 through August 22, 2017, inclusive. The lawsuit seeks to recover damages for Top Ships investors under the federal securities laws.
The complaint alleges that through his control of Top Ships, the Company’s CEO, Evangelos J. Pistiolis (Pistiolis), caused Top Ships to engage in a series of manipulative share issuance/sales transactions with Kalani Investments Limited (Kalani) through which Top Ships would sell its common shares and securities convertible into common shares to Kalani at a significant discount to market price and file registration statements so that Kalani could resell these shares into the market.
When Kalani’s sales of Top Ships stock caused the price of Top Ships stock to decline, Top Ships would reverse split the stock, causing a certain number of outstanding shares to be merged into a single share, and thereby raise the price of Top Ships stock.
Then, Top Ships would again sell securities to Kalani and the same pattern of transactions would ensue. At the same time that Top Ships was engaging in these transactions, defendants failed to disclose the true purpose of the transactions and related stock issuances and reverses – to finance related-party transactions and acquisitions that primarily benefited Pistiolis and his related companies, and otherwise funnel money to Top Ships insiders.
When the true details entered the market, the lawsuit claims that investors suffered damages.
