The complaint charges Hain and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Hain is a publicly traded organic and natural products company with operations in North America, Europe and India.
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. As a result of these disclosures, the price of Hain common stock fell more than $14 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.
Plaintiff seeks to recover damages on behalf of all purchasers of Hain securities during the Class Period (the "Class"). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller is widely recognized as one of the leading law firms advising U.S. and international institutional investors in securities litigation and portfolio monitoring. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history and was ranked first in both total amount recovered for investors and number of securities class action recoveries in ISS's SCAS Top 50 Report for the last two years. Robbins Geller attorneys have shaped the law in the areas of securities litigation and shareholder rights and have recovered tens of billions of dollars on behalf of the Firm's clients. Robbins Geller not only secures recoveries for defrauded investors, it also strives to implement corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit rgrdlaw.com/cases/haincelestial/ for more information.
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SOURCE Robbins Geller Rudman & Dowd LLP