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NM.US
id: 1616
Navios Maritime Partners ($NMM) Related-Party Acquisition, Overvaluation, and Stock Crash Case
A formal lawsuit has been filed in court initiating the class action.
S.D. New York
Court1:25-cv-04650
Case number10/19/2023
Class period Start05/13/2024
Class period End- $NMM investors filed a claim against Navios Maritime Partners for concealing a conflicted, overvalued related-party deal and failing to disclose the full terms and risks of acquiring Navios Maritime Holdings’ fleet.
- After Navios revealed massive dilution, insider favoritism, and a 90% dividend cut, $NMM collapsed over 40%, including a 30.3% drop on February 29, 2024.
Case Details:
Between February 25, 2021 and February 28, 2024, Navios Maritime Partners assured investors it was making strategic, accretive acquisitions and operating in the best interest of common unitholders. In reality, management executed a highly conflicted deal with Navios Maritime Holdings—controlled by the same executive, Angeliki Frangou—transferring 36 vessels at inflated valuations and undisclosed liabilities.
The company failed to disclose that Holdings was in severe financial distress and that this transaction primarily served to offload its weakest assets and debt onto $NMM. The conflicts of interest, hidden liabilities, and unrealistic projections were not revealed until much later.
On February 29, 2024, Navios disclosed the full impact of the deal: a sharp drop in cash flow, a 90% cut to the quarterly distribution, and losses tied to underperforming ships. $NMM fell 30.3% that day to close at $21.32, with further losses in the following weeks as investor trust eroded.
Based on these events, $NMM investors filed a claim against Navios Maritime Partners, accusing the company of the following:
- It concealed the self-dealing nature of the Holdings fleet acquisition and failed to disclose the financial condition of the seller.
- It overstated the accretive nature of the transaction and misled investors about debt and cash flow impacts.
- It ignored the fundamental conflict of interest between Navios Holdings and Partners, both led by the same CEO.
Considering all the representations, investors believe Navios misled the market to protect its leadership and facilitate an insider bailout at the expense of public unitholders.
Case Type
US Securities Class Action
Case Status
Initial Complaint
Alleged Offence
Misleading Statements,
Fraud,
Failure to Disclose,
Breach of Fiduciary duty
Suspected Party
Directors,
Management,
Shareholder,
Other
Security Type
Depository Securities (ADS, ADR, GDR)
Trade Direction
Long
Shock Event Date
01/19/2024
Filing date
06/03/2025