Imperial Sugar Company Directors Face Long Term Investor Investigation
San Diego, Sept. 22, 2011 (Shareholders Foundation) -- An investigation on behalf of investor Imperial Sugar Company (NASDAQ:IPSU) shares over possible breaches of fiduciary duties by certain officers and directors of Imperial Sugar was announced.
The investigation by a law firm for current long term NASDAQ: IPSU long term investors follows a lawsuit filed by investors who purchased their IPSU stocks only December 29, 2010 and August 5, 2011. According to that complaint the plaintiff alleges that Imperial Sugar Co. violated the Securities Exchange Act of 1934 by issuing materially false and misleading statements regarding its business and prospects.
Shares of Imperial Sugar Company (Public, NASDAQ: IPSU) increased from as low as $5.35 in March 09 to as high as $25.40 on August 2, 2011
Then on August 5, 2011, Imperial Sugar Company announced its third fiscal quarter 2011 results. Among other things, Imperial Sugar reported net sales for the third fiscal quarter 2011 of $197 million, compared to $261 million for the same period last year and a Net Loss of $16.1 million, or $1.35 per diluted share, for the third fiscal quarter ended June 30, 2011, compared to a net loss of $5.7 million, or $0.48 per diluted share, for the third fiscal quarter of 2010. Imperial Sugar Company also said that for the nine-month period ended June 30, 2011 Imperial Sugar Company reported a net loss of $20.8 million, or $1.75 per diluted share, compared to net income of $139.2 million, or $11.53 per diluted share, for the same period last year.
Shares of Imperial Sugar Company (IPSU) fell from as high as $24.49 on August 2, 2011 to $7.79 on August 8, 2011 and continued to decline to as low as $6.56 on August 25, 2011.
IPSU stocks traded as low as $6.60 on September 22 and closed on September 23, 2011 at $6.94 per share.