An investigation on behalf of investors of Diamond Resorts International Inc (formerly NYSE: DRII) shares over potential securities laws violations by Diamond Resorts International Inc and certain of its directors and officers in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Diamond Resorts International Inc (formerly NYSE: DRII) concerning whether a series of statements by Diamond Resorts International Inc regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

On June 23, 2016, Apollo Global Management LLC submitted a bid to purchase Diamond Resorts International Inc for $30.25 per share through a subsidiary.

On June 26, 2016, Diamond Resorts International Inc's Board of Directors voted in favor of the sale of Diamond to Apollo. Stephen J. Cloobeck, Diamond Resorts International Inc's founder, chairman, and largest stockholder abstained from the vote.

On June 29, 2016, Diamond Resorts International Inc (NYSE:DRII) announced that it has entered into an Agreement and Plan of Merger with affiliates of certain funds managed by affiliates of Apollo Global Management, LLC pursuant to which those Funds will acquire Diamond Resorts International Inc (NYSE:DRII) for $30.25 per share or approximately $2.2 billion.

On July 14, 2016, Diamond Resorts International Inc filed a Recommendation Statement with the U.S. Securities and Exchange Commission, recommending that Diamond Resorts International Inc shareholders tender their shares pursuant to Apollo Global Management, LLC's tender offer.

According to the investigation the Recommendation Statement omitted to state that Stephen J. Cloobeck k had abstained from voting on the sale of Diamond for reasons that contradicted the Board's recommendation to Diamond's shareholders.