US SEC launches probe into Hain Celestial's accounting practices
The US Securities and Exchange Commission’s (SEC) has launched an investigation into the accounting practices of food firm Hain Celestial Group.
The company disclosed the news in a February 10 filing. The regulator would particularly look into concessions provided to certain US distributors which had been identified by the company.
In August 2016, Hain Celestial had informed the SEC of the delay in the announcement of its financial results. The food company stated then that its board of directors was carrying out an internal investigation on the same.
However, in November last year, the board’s audit committee concluded that there was no evidence of any intentional wrongdoing relating to the company’s financial statements.
Hain Celestial in the filing stated that it had been regularly updating the SEC about the company affairs as well as the results of the internal investigation carried out by its audit committee.
The food company’s filing of Form NT 10-Q on February 10 read: “The SEC has issued a formal order of investigation and, pursuant to such order, the SEC. issued a subpoena to the company seeking relevant documents. The company is in the process of responding to the SEC’s requests for information and intends to cooperate fully with the SEC.”
Hain Celestial is yet to issue its financial results since May 2016 when it reported its Q3 earnings.
The food company was due to file its quarterly report on Form 10-Q for the quarter ended December 31, 2016 by February 9.
In connection to the accounting fiasco, New York based national securities law firm, Faruqi & Faruqi has taken up investigation of potential misconduct in Hain Celestial on behalf of the group’s investors.
Image: US Security and Exchange Commission Office in Washington, D.C. Photo: courtesy of D Ramey Logan/Wikipedia.