SAN FRANCISCO, April 18, 2016 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, reminds DS Healthcare Group, Inc. (NASDAQ:DSKX) investors of the May 31, 2016 lead plaintiff deadline in the securities class action lawsuit related to the Company’s improper revenue recognition and other accounting improprieties and alerts them that the Class Period has been expanded to May 15, 2014 through April 3, 2016.
If you suffered significant losses because of your purchases of DS Healthcare Group between May 15, 2014 and April 3, 2016, or have information that will help our continuing investigation contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation by calling 510-725-3000, emailing DSKX@hbsslaw.com or visiting https://hbsslaw.com/cases/DSKX. The lawsuit was filed in the U.S. District Court for the Southern District of Florida and investors have until May 31, 2016 to move the court to participate as a lead plaintiff.
On March 23, 2016, DS Healthcare Group announced (a) it had improperly recognized revenues during the two fiscal quarters ended June 30, 2015 and September 30, 2015, it would restate those financial statements, and the adjustments would be material to investors and (b) its Board of Directors terminated its President, Daniel Khesin and removed him as its Chairman of the Board for cause. On this news, the price of DS Healthcare Group stock fell $0.47 per share or over 35% from its previous closing price to close at $0.86 per share.
On March 28, 2016, the Company announced the improperly recorded revenues totaled approximately $300,000 and $600,000 for the 2015 second and third quarters, respectively. On this news, the price of DS Healthcare Group stock fell $0.09 per share or over 11% from its previous closing price to close at $0.72 per share.
The complaint alleges defendants made false and misleading statements and failed to disclose: (a) improper revenue recognition during the fiscal quarters ended June 30, 2015 and September 30, 2015; (b) improper equity transactions for those quarters in violation of GAAP; (c) Defendant Khesin breached fiduciary duties owed to the Company; and (d) as a result Defendants’ statements about the Company’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Whistleblowers: Persons with non-public information regarding DS Healthcare 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 DSKX@hbsslaw.com .
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