Updated: May 16, 2018
Status: Ongoing Case
On June 5, 2017, Labaton Sucharow was appointed co-lead counsel in this securities fraud class action against Hain Celestial Group, Inc. on behalf of all purchasers of Hain Celestial Group, Inc. securities from November 5, 2015 through August 16, 2016. Hain Celestial Group, Inc. manufactures, markets, distributes, and sells organic and natural products. The company sells its products through specialty and natural food distributors, supermarkets, natural food stores, mass-market and e-commerce retailers, food service channels and club, and drug and convenience stores in approximately 70 countries worldwide.
The lead plaintiff alleges that the defendants made materially misleading statements and omissions by failing to disclose that (1) the company was improperly recognizing customer concessions as revenues, (2) the company’s financial results were materially false and misleading in violation of generally accepted accounting practices, (3) the company’s internal controls were materially inadequate such that its reported results were not reliable, and (4) as a result, the company was not on track to achieve the financial results it stated it was on track to achieve.
Lead plaintiffs filed a corrected consolidated class action complaint on September 7, 2017, which the defendants moved to dismiss. The motion has been fully briefed and we await the court’s decision.
The case is In re The Hain Celestial Group Inc. Securities Litigation, No. 16-cv-04581 (E.D.N.Y.). Labaton Sucharow represents co-lead plaintiffs Rosewood Funeral Home and Salaman Gimpel. The defendants are Hain Celestial Group, Inc. and two executives, President and CEO Irwin D. Simon, and CFO Pasquale Conte.