Hamilton Beach Brands Holding Company Class Action Lawsuit
- Company Name
- Hamilton Beach Brands Holding Company
- Stock Symbol
- Class Period
- February 27, 2020 to May 8, 2020
- Eastern District of New York
The Hamilton Beach Brands Holding Company class action lawsuit charges Hamilton Beach and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Hamilton Breach’s securities between February 27, 2020 and May 8, 2020 (the “Class Period”). The Hamilton Beach class action lawsuit was commenced on May 22, 2020 in the Eastern District of New York and is captioned Chen v. Hamilton Beach Brands Holding Company, No. 20-cv-02323.
Hamilton Beach, together with its subsidiaries, designs, markets, and distributes small electric household and specialty housewares appliances. According to Hamilton Beach’s most recent annual report on Form 10-K, Hamilton Beach has two Mexican subsidiaries – Grupo HB/PS S.A. de C.V. and Hamilton Beach Brands de Mexico S.A. de C.V.
The Hamilton Beach class action lawsuit alleges that defendants made false and/or misleading statements and/or failed to disclose that: (i) Hamilton Beach had inadequate disclosure controls and procedures and internal control over financial reporting, particularly with respect to one of its Mexican subsidiaries; (ii) consequently, Hamilton Beach’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 Beach 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 U.S. Securities and Exchange Commission; and (iv) as a result, Hamilton Beach’s public statements were materially false and misleading at all relevant times.
On May 11, 2020, Hamilton Beach announced that it could not timely file its first quarter 2020 Form 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 Beach further stated that its “Audit Review Committee has commenced an internal investigation” regarding “the realizability of certain assets of the Mexican subsidiary.” On this news, Hamilton Beach’s stock price fell nearly 9%.
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