SAN FRANCISCO, May 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 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.
The litigation concerns DS Healthcare Group’s March 23, 2016 admitted GAAP violations during the quarters ended June 30, 2015 and September 30, 2015 such that restatements were necessary to correct material errors. In addition, its Board terminated President and Chairman Daniel Khesin for cause. On this news, the price of DS Healthcare Group stock fell over 35%.
On March 28, 2016, the Company announced its revenue restatements for the 2015 second and third quarters, respectively. The price of DS Healthcare Group stock fell over 11%.
On April 3, 2016, the Company shed light on Mr. Khesin’s firing. He “engaged in a series of questionable stock transactions without board authorization, engaged in self-dealing and potentially engaged in transactions designed to artificially inflate the price of DSKX common stock.” Before and after his dismissal, the Company stated, Khesin “engaged in totally inappropriate conduct, including an illegal campaign of self-help, additional violations of the federal securities laws, as well as intimidation and defamation against Board members, management and outside professionals.”
“We’re focused on DSKX’s unquestionable GAAP violations and also on why Khesin’s malfeasance was tolerated before he was fired,” said Hagens Berman partner Reed Kathrein.
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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