SAN FRANCISCO, Feb. 26, 2020 /PRNewswire/ -- Hagens Berman urges investors in Dorman Products, Inc. (NASDAQ: DORM) who have suffered significant losses to submit their losses now. The firm is investigating possible securities law violations, and certain investors may have valuable claims.
Dorman Products, Inc. (DORM) Investigation:
The investigation concerns whether Dorman misrepresented and failed to disclose the true demand for the Company's products.
In past quarters, Dorman has touted the increase in its reported net sales, attributing the positive results to the Company's successful launch of a significant new chassis program to a major retail customer.
But on Feb. 24, 2020, Dorman announced disappointing Q4 2019 financial results, including Q4 net sales of only $239.6 million, representing an almost 10% year-over-year decrease. The Company blamed the declining sales on "an increase in customer return provisions (resulting in a reduction of net sales of $11.2 million) primarily from new business wins, including a recently launched premium chassis program with a large national retail customer."
This news drove the price of Dorman shares sharply lower on Feb. 24, 2020.
"We're focused on investors' losses and whether Dorman may have engaged in an illicit channel-stuffing scheme to inflate its net sales and earnings," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of Dorman and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Dorman should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
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Reed Kathrein, 844-916-0895
SOURCE Hagens Berman Sobol Shapiro LLP