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Oklahoma City, OK (May 26, 2020) – On May 22, 2020, a securities class action lawsuit was filed in the United States District Court for the Eastern District of New York against Hamilton Beach Brands Holding Company (NYSE: HBB). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is February 27, 2020 through May 8, 2020. More specifically, the complaint alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about Hamilton’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (i) Hamilton had inadequate disclosure controls and procedures and internal control over financial reporting, particularly with respect to one of its Mexican subsidiaries; (ii) 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; (iii) 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 (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On May 11, 2020, during pre-market hours, Hamilton announced that it could not timely file its 1Q20 10-Q because of “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 has commenced an internal investigation” regarding “the realizability of certain assets of the Mexican subsidiary.” On these disclosures, Hamilton’s stock price fell $1.03 per share, or 8.99%, to close at $10.43 per share on May 11, 2020.
Plaintiff seeks to recover damages on behalf of all Hamilton Beach Brands Holding Company shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Tuesday, July 21, 2020 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
If you wish to discuss this action, obtain further information and participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact: Robin Hester at email@example.com