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Stock impact report

Hain Celestial must face renewed 'channel stuffing' lawsuit, US appeals court says [Yahoo! Finance]

The Hain Celestial Group, Inc. (HAIN) 
Last the hain celestial group, inc. earnings: 2/6 07:30 am Check Earnings Report
US:NASDAQ Investor Relations: ir.hain.com
Company Research Source: Yahoo! Finance
defrauding shareholders by concealing an alleged "channel stuffing" scheme to inflate revenue and its stock price. Reversing a trial judge's dismissal, the 2nd U.S. Circuit Court of Appeals in Manhattan said shareholders plausibly alleged that the organic and natural foods company and four executives intended to deceive them about its financial results and compliance with accounting principles. Hain products include Terra and Garden of Eatin' chips, Earth's Best baby food and Celestial Seasonings tea. The Hoboken, New Jersey-based company and its lawyers did not immediately respond to requests for comment. Lawyers for the shareholders did not immediately respond to similar requests. Channel stuffing is a practice where a company arranges for more goods to be shipped to distributors than consumers will likely buy. This boosts present sales, but cannibalizes revenue from future quarters. Some companies use channel stuffing to avoid missing Wall Street financial forecasts. Sh Show less Read more
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