New York / NY. (div) Corporate litigation boutique Bronstein, Gewirtz + Grossman LLC (BG+G) is investigating potential claims on behalf of purchasers of the securities of The Hain Celestial Group Inc. The investigation concerns whether Hain and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On August 15, 2016, post-market Hain said it would be delaying its fourth quarter and fiscal year 2016 financial results, «[d]uring the fourth quarter, the Company identified concessions that were granted to certain distributors in the United States. The Company is currently evaluating whether the revenue associated with those concessions was accounted for in the correct period and is also currently evaluating its internal control over financial reporting. The Audit Committee of the Company’s Board of Directors is conducting an independent review of these matters and has retained independent counsel to assist in that review». Hain also said that it does not anticipate reaching its previously announced guidance for fiscal year 2016 (see bakenet:eu on 2016-08-18).
Following this news, Hain stock dropped as much as 15.90 USD, or roughly 29 percent, to 39.45 USD during after-hours trading on August 15, 2016.
Tripp Levy PLLC, one of the leading law firms representing investors nationwide, is also investigating possible securities law violations involving Hain Celestial Group Inc., a leading food, beverage, and personal care products company.
The investigation also concerns Hain Celestial’s August 15, 2016 announcement that it would postpone the release of its fourth quarter and fiscal year 2016 financial results. The Company also stated that it does not expect to achieve its previously announced guidance for fiscal year 2016 (see bakenet:eu on 2016-08-18).
Specifically, on August 15, 2016 the Company announced it will delay the release of its fourth quarter and fiscal year 2016 financial results. 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». Further, «[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».
The Company is currently evaluating whether the revenue associated with those concessions was accounted for in the correct period and is also currently evaluating its internal control over financial reporting. The Audit Committee of the Company’s Board of Directors is conducting an independent review of these matters and has retained independent counsel to assist in that review».
Following this news, shares of Hain Celestial stock declined over 15.00 USD per share, or almost 30 percent, opening at 37.85 USD on August 16, 2016.
