Suit filed against Lake Success-based Hain Celestial

Lake Success-based organic and natural product supplier Hain Celestial is facing potential legal and financial troubles after announcing late Monday that it would delay releasing its fourth quarter and 2016 fiscal year finances due to a review of its accounting.
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  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.”
Hain Celestial said in a 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.
After Monday’s announcement, Hain Celestial’s stock dropped nearly 27 percent on the market to $39.35 per share.
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 Tuesday they were investigating the situation.
Hain Celestial officials said the company could not release its financial results until its independent review was completed.
Officials also said the company does not expect to reach its expected revenue for the year, which it previously announced as between $2.946 billion and $2.966 billion.
Efforts to reach a Hain Celestial official for comment were unavailing.
Headquartered at 1111 Marcus Ave., Hain Celestial has  popular brands such as Almond Dream, Terra and Celestial Seasonings.