Imperial Sugar Company Under Investor Investigation Over Possible Securities Laws Violations
San Diego, Aug 22, 2011 (Shareholders Foundation) -- Certain directors and officers of Imperial Sugar are under investigation on behalf of investors in shares of Imperial Sugar Company (NASDAQ:IPSU) over possible Violations of Securities Laws.
The investigation by a law firm focuses on possible Imperial Sugar (IPSU) shareholder claims based on potential violations of the federal securities laws. Specifically the investigation concerns whether Imperial Sugar Company or others may have violated securities laws by issuing a series of statements regarding its business, its prospects and its operations that were materially false and misleading at the time they were made.
Imperial Sugar Company reported an increase in its 12months Total Revenue from $552.56million reported on Sept. 30, 09 to $908.03million reported on Sept. 30, 2010. Its Net Income rose within the same time frame from a Net Loss of $23.18million to a Net Income $136.86million.
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 over $25 in the beginning of August to under $7 on August 18, 2011.