NEW YORK, March 24, 2016 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of DS Healthcare Group, Inc. ("DS Healthcare" or the "Company") (NASDAQ: DSKX). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. 9980.
The investigation concerns whether DS Healthcare and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On March 23, 2016, post-market, DS Healthcare disclosed that the Company's financial statements for the two fiscal quarters ended June 30, 2015 and September 30, 2015 should no longer be relied upon, due to revenue recognition errors and improper recording of certain equity transactions. The Company has discussed these issues with its Audit Committee and independent accounting firm, and plans to restate the relevant financial statements as soon as possible. Additionally, DS Healthcare disclosed that the Audit Committee and independent counsel had commenced an investigation into the involvement of the Company's President, Daniel Khesin, in allegedly fraudulent revenue recognition and equity transaction errors, and that Mr. Khesin's employment as President of DS Healthcare had been terminated for cause based on the current results of the investigation.
On this news, DS Healthcare stock has fallen as much as $0.68, or 51.13%, to $0.65 during intraday trading on March 24, 2016.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Florida, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
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SOURCE Pomerantz LLP