BOSTON, Nov. 11, 2014 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors nationwide, is investigating possible securities law violations by Rayonier Inc. ("Rayonier" or the "Company") (NYSE: RYN) following the Company's announcement that its financial results for the first and second quarters of 2014 were overstated when announced.
More specifically, on November 10, 2014, Rayonier announced that an internal review had determined that the Company "included in merchantable timber inventory for 2014, timber in specially designated parcels located in restricted, environmentally sensitive or economically inaccessible areas, which was incorrect, inconsistent with its definition of merchantable timber inventory, and a significant change from prior years." In response to these findings, the Company restated its financial results for the effected quarters because it had "understated its depletion expense in cost of goods sold … by approximately $2.0 million in each of the quarterly periods ended March 31, 2014 and June 30, 2014, which resulted in a corresponding overstatement of income from continuing operations of $1.9 million and $2.0 million, respectively, in those periods." Likewise, the internal review found "a material weakness in the Company's internal controls related to merchantable timber inventory." In conjunction with the announcement of the restatement, the Company also announced that it was lowering its quarterly dividend.
Not surprisingly, this news shocked the market and caused the Rayonier's stock price to plummet $2.71 per share on November 10, 2014, falling from $31.50 per share to close at $28.82, on extremely high volume. The next day, November 11, 2014, the negative market reaction continued, causing the Company's share price to trade as low as $26.19 per share in early trading, establishing a new 52 week low for Rayonier.
Block & Leviton's investigation seeks to determine, among other things, whether Rayonier or its officers and directors violated the federal securities laws by artificially and materially inflating its financial results. If you purchased Rayonier securities between April 29, 2014, through November 10, 2014, and have any information relevant to this investigation, or have questions about your legal rights, please contact attorney Steven Harte of Block & Leviton LLP at (617) 398-5600 or email him at [email protected]. Confidentiality to whistleblowers or others with information relevant to the lawsuit is assured.
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Contact: BLOCK & LEVITON LLP
Steven Harte, Esq.
SOURCE Block & Leviton LLP