The Law Offices of Frank R. Cruz reminds investors of the upcoming April 18, 2023 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired Alico, Inc. (“Alico” or the “Company”) (NASDAQ: ALCO) securities between February 4, 2021 and December 13, 2022, inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to participate.
On December 6, 2022, Alico announced that it needed additional time for the “completion of the audit of its financial results for the period ended September 30, 2022 by its independent registered public accounting firm” and was postponing its year-end earnings call.
On this news, Alico’s stock price fell $3.06, or 10.4%, to close at $26.29 per share on December 6, 2022, thereby injuring investors.
Then, on December 7, 2022, Alico provided a further update on the delays that it faced in reporting its financial results, disclosing that the “key item” requiring additional time “involves evaluation of the proper amount of the Company’s Deferred Tax Liability, particularly certain portions of that Deferred Tax Liability arising in prior fiscal years, including those going back to fiscal year 2019 or possibly several years before fiscal year 2019.”
Then, on December 13, 2022, Alico filed its 2022 Annual Report, restating its previously issued consolidated balance sheet, audited consolidated statements of changes in equity and related disclosures as of September 30, 2021 included in the Company’s Annual Report for 2021, as well as prior statements for interim periods of fiscal 2021 and 2022. Specifically, an error related to the calculation of the deferred tax liabilities for fiscal 2015 through 2019 “resulted in a cumulative reduction in the Company’s deferred tax liability, and a corresponding cumulative increase in retained earnings, of approximately $2,512,000 on the Company’s balance sheet as of September 30, 2022.”
On this news, Alico’s stock price fell $2.64, or 9.5%, to close at $25.05 per share on December 14, 2022, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Alico had deficient disclosure controls and procedures and internal control over financial reporting; (2) as a result, the Company had improperly calculated Alico's deferred tax liabilities over a multi-year period; (3) accordingly, the Company would likely be required to restate one or more of its previously issued financial statements; (4) the foregoing would impede the timely completion of the audit of the Company's financial results in advance of its year-end earnings call; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased or otherwise acquired Alico securities during the Class Period, you may move the Court no later than April 18, 2023 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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