SAN FRANCISCO, Sept. 06, 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.
To all investors in HAIN: If you purchased or otherwise acquired securities of The Hain Celestial Group, Inc. between November 5, 2015 and August 15, 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 the Company announced it would delay the release of its fourth quarter and fiscal year 2016 financial results because of possible accounting irregularities and that it was evaluating internal controls for financial reporting.
More specifically, 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.” In response to this news, the price of Hain shares fell over 28% during intraday trading on heavy volume.
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.
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.
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