NEW YORK, NY - (NewMediaWire) - May 27, 2020 - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Hamilton Beach Brands Holding Company ("Hamilton" or the "Company")(NYSE:HBB) of the July 21, 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 Hamilton stock or options between February 27, 2020 and May 8, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/HBB. 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 firstname.lastname@example.org.
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The lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of all those who purchased Hamilton securities between February 27, 2020 and May 8, 2020 (the "Class Period"). The case, Chen v. Hamilton Beach Brands Holding Company et. al., No. 20-cv-02323 was filed on May 22, 2020, and has been assigned to Judge Sandra J. Feuerstein.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) Hamilton had inadequate disclosure controls and procedures and internal control over financial reporting, particularly with respect to one of its Mexican subsidiaries; (2) consequently, the Company’s accounting included certain irregularities with respect to the timing of recognition of selling and marketing expenses and the classification of certain expenditures within the statement of operations at this Mexican subsidiary, as well as potential misconduct with respect to the realizability of certain assets of the Mexican subsidiary; (3) as a result of all the foregoing, Hamilton could not accurately attest to its financial results, particularly with respect to these metrics, and was consequently at an increased risk of delaying the filing of its periodic reports with the SEC; and (4) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On May 11, 2020, Hamilton announced that it could not timely file its 10-Q for the first quarter of the 2020 fiscal year citing "certain accounting irregularities with respect to the timing of recognition of selling and marketing expenses and the classification of certain expenditures within the statement of operations at its Mexican subsidiary." Hamilton further stated that its Audit Review Committee had “commenced an internal investigation" regarding "the realizability of certain assets of the Mexican subsidiary."
On this news, Hamilton's share price fell from $11.46 per share on May 8, 2020 to a closing price of $10.43 on May 11, 2020: a $1.03 or 8.99% 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 Hamilton's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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