According to the law firm press release, Hain manufactures, markets, distributes, and sells organic and natural products in the United States, the United Kingdom, Canada, and Europe. 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 Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company lacked adequate controls over financial reporting; (ii) consequently, the Company failed to correctly account for revenue associated with concessions granted to certain distributors in the United States; and (iii) as a result of the foregoing, Hain’s public statements were materially false and misleading at all relevant times.
On August 15, 2016, after the market closed, Hain announced that it would delay the release of its fourth quarter and fiscal year 2016 financial results. Additionally, Hain announced that it did not expect to achieve its previously announced guidance for fiscal year 2016.
On this news, Hain’s share price fell $14.05, or 26.31%, to close at $39.35 on August 16, 2016.
On June 5, 2017, the Court appointed Lead Plaintiffs and Counsel. An amended Complaint was filed on September 7, 2017. Defendants filed a Motion to Dismiss the amended Complaint on October 3. On March 29, 2019, the Court issued an Order granting Defendants' Motion to Dismiss. Lead Plaintiffs were given leave to amend the Complaint. On May 6, Lead Plaintiffs filed a second amended consolidated Complaint. Defendants filed a Motion to Dismiss the second amended consolidated Complaint on June 20. On April 6, 2020, the Court issued an Order granting Defendants' Motion to Dismiss. The case was dismissed with prejudice. On May 5, 2020, Lead Plaintiffs filed a notice appealing the Court's Dismissal Order.