NEW YORK, May 20, 2020 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in HF Foods Group Inc. ("HF Foods" or the "Company") (NASDAQ:HFFG) of the May 28, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in HF Foods stock or options between August 23, 2018 and March 23, 2020and would like to discuss your legal rights, click here:www.faruqilaw.com/HFFG. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to[email protected]
CONTACT: FARUQI & FARUQI, LLP 685 Third Avenue, 26th Floor New York, NY 10017 Attn: Richard Gonnello, Esq. [email protected] Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased HF Foods securities between August 23, 2018 and March 23, 2020 (the "Class Period"). The case, Mendoza v. HF Foods Group Inc. et al, No. 20-cv-02929 was filed on March 29, 2020.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) HF Foods engaged in undisclosed related party transactions; (2) HF Foods insiders and related parties were enriching themselves by misusing shareholder funds; (3) HF Foods was "gaming" the FTSE/Russell Index by masking the true number of shares free floating; and (4) as a result, Defendants' public statements were materially false and/or misleading at all relevant times.
Specifically, on March 23, 2020, Hindenburg Research published a report (the "Report") explaining that HF Foods had, among other issues, failed to disclose: (i) transactions with related-parties; (ii) its flagrant misuse of shareholder funds; and (iii) its gaming of the FTSE/Russell Index criteria.
On this news, HF Foods's stock fell from a closing price of $12.32 on March 20, 2020 to $9.80 on March 23, 2020—a $2.52 or 20.45% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding HF Food's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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