WASHINGTON, D.C. — U.S. Market Advisors Law Group PLLC announces that a class action lawsuit has been filed against Hain Celestial Group, Inc. (“Hain” or the “Company”) (NASDAQ: HAIN) and certain of its officers. The class action, filed in United States District Court, Eastern District of New York, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of Embraer between November 5, 2015 and August 16, 2016.
The Hain Celestial Group is an American food company that manufactures and distributes natural foods and personal care products to the United States, the United Kingdom, Canada, and Europe.
The Allegations Against Hain
The complaint alleges that during the Class Period, defendants misrepresented and failed to disclose material adverse facts regarding the Company’s business and prospects, which were known to defendants or recklessly disregarded by them, including that: (a) the Company had been improperly and prematurely recognizing revenues where it had granted customer concessions; (b) Hain’s financial results were materially false and misleading in violation of U.S. Generally Accepted Accounting Principles; (c) Hain’s internal controls were so materially inadequate that its reported results were not reliable; and (d) as a result, the Company was not on track to achieve the financial results it stated it was on track to achieve during the Class Period.
On August 15, 2016, after the close of trading, Hain issued a press release disclosing that it would have to delay the release of its fourth quarter and fiscal year 2016 financial results. The Company announced that during the fourth quarter, it had identified concessions that were granted to certain distributors in the United States and it was evaluating whether the revenue associated with those concessions was accounted for properly. Hain also announced that it was evaluating its internal control over financial reporting and that it did not expect to achieve its previously announced guidance for fiscal year 2016.
As a result of these disclosures, the price of Hain common stock fell $14.05 per share to close at $39.35 per share on August 16, 2016, a one-day decline of more than 26%, on extremely high trading volume of more than 41.5 million shares traded, or 25 times the average trading volume over the preceding ten trading days.
Hain Investors Have Legal Options
If you suffered a loss from Hain investments you have until October 17, 2016 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery does not require that you serve as a lead plaintiff. Concerned shareholders who would like more information about their rights and potential remedies can contact attorney David P. Abel (202) 559-8591, [email protected].
U.S. Market Advisors Law Group PLLC is a law firm based in Washington, D.C. The firm represents institutional investors from across the world in U.S. securities class action lawsuits.
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