SAN FRANCISCO, Oct. 07, 2016 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP reminds The Hain Celestial Group, Inc. (NASDAQ: HAIN ) investors of the October 17, 2016 Lead Plaintiff deadline in the securities class action lawsuit filed in the United States District Court for the Eastern District of New York.
If you purchased or otherwise acquired securities of The Hain Celestial Group, Inc. between November 5, 2015 and August 16, 2016 and suffered significant losses contact Hagens Berman Sobol Shapiro LLP. For more information visit:
https://www.hbsslaw.com/cases/HAIN
or contact Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000 or emailing HAIN@hbsslaw.com .
On August 15, 2016 HAIN announced it was delaying release of its fourth quarter and fiscal year 2016 financial results because of possible accounting irregularities and evaluating its internal controls for financial reporting.
Hain explained it “has recognized revenue pertaining to the sale of its products to certain distributors at the time the products are shipped to such distributors” and “[t]he Company is evaluating whether the revenue associated with the concessions granted to certain distributors should instead have been recognized at the time the products sell through its distributors to the end customers.” This news drove the price of Hain shares down over 28% during intraday trading.
Filings with the U.S. Securities and Exchange Commission show that between November 5, 2015 and August 15, 2016 the Company’s CEO and Chairman (Irwin Simon) sold a significant number of shares for proceeds of over $15.4 million.
On September 1, 2016, Hain announced it received a noncompliance letter from the Nasdaq, which could eventually lead to the company being delisted from the stock exchange.
“It is pretty basic that GAAP requires revenue be earned before it can be recognized, and the Company’s apparent failure to implement that principle has inflicted significant harm on its shareholders” said Hagens Berman partner Reed Kathrein. “If Hain doesn’t deliver its financial statements to creditors by late December, it would be in default.”
Whistleblowers: Persons with non-public information regarding The Hain Celestial Group, Inc. should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email HAIN@hbsslaw.com .
About Hagens Berman Hagens Berman is a national investor-rights law firm headquartered in Seattle, Washington with offices in 10 cities. The Firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the Firm and its successes can be found at www.hbsslaw.com . Read the Firm’s Securities Newsletter , and visit the blog . For the latest news visit our newsroom or follow us on Twitter at @classactionlaw .
Contact: Reed Kathrein, 510-725-3000
