Nasdaq gives Hain Celestial delisting notice

The Island Now

After announcing nearly three weeks ago that it would delay releasing its fourth quarter and 2016 fiscal year finances due to a review of its accounting, Lake Success-based Hain Celestial announced Thursday that the Nasdaq Stock Market sent it a delisting notice.
The notice, which the company said on its website was delivered on Wednesday, said that Hain Celestial did not comply with Nasdaq requirements to file financial reports in a timely manner. It was expected to file its fiscal year report ending June 30 by Aug. 29.
“This notification has no immediate effect on the listing of Hain Celestial’s common stock on Nasdaq,” the company said in a statement on its website.
Nasdaq rules allow for Hain Celestial to take 60 days to submit a plan to regain compliance.
If that plan is accepted, the company said, it would have up to 180 days from the reporting deadline to regain compliance.
Hain Celestial said in a Aug. 15 news release that the board of directors’ audit committee was conducting an independent review of its financial reporting.
“During the fourth quarter, the company identified concessions that were granted to certain distributors in the United States,” the release said. “The company is currently evaluating whether the revenue associated with those concessions was accounted for in the correct period and is also currently evaluating its internal control over financial reporting.”
The company said it  previously reported revenue when it shipped products to distributors rather than reporting it when the products were sold.
Following the announcement, Robbins Geller Rudman & Dowd LLP announced Tuesday that it filed a class-action complaint against the company on behalf of those who purchased shares of the company between Nov. 5, 2015, and Aug. 16, 2016.
According to a Robbins Geller news release, the complaint alleges that during the time period, Hain Celestial “failed to disclose material adverse facts regarding the company’s business and prospects, which were known to defendants or recklessly disregarded by them.”
Both Manhattan-based Harwood Feffer LLP, a law firm that represents individual and institutional investors, and Manhattan-based Tripp Levy PLLC, a firm that represents individual and institutional shareholders, announced that they were investigating the situation.
Hain Celestial officials said the company could not release its financial results until its independent review was completed.
Headquartered at 1111 Marcus Ave., Hain Celestial produces popular brands such as Almond Dream, Terra and Celestial Seasonings.

By Joe Nikic

Share this Article