Portnoy Law Files Securities Class Action on Behalf of Hamilton Beach Investors
Investors with losses are encouraged to contact the firm
LOS ANGELES, CA - (NewMediaWire) - May 26, 2020 - The Portnoy Law Firm advises investors that the firm has filed a class action lawsuit on behalf of Hamilton Beach Brands Holding Company (“Hamilton Beach” or the “Company”) investors that acquired Hamilton Beach securities (NYSE: HBB) between February 27, 2020, and May 8, 2020. Hamilton Beach investors have until July 21, 2020 to seek appointment as a Lead Plaintiff for the class.
Hamilton was founded in 1904 and is headquartered in Glen Allen, Virginia. The Company, together with its subsidiaries, designs, markets, and distributes small electric household and specialty housewares appliances. The Company sells its products through a network of mass merchandisers, e-commerce retailers, national department stores, variety and drug store chains, specialty home retailers, distributors, and other retail outlets.
As a holding company, Hamilton primarily operates through its subsidiaries, which are located throughout the U.S. and internationally, including Mexico. According to the Company’s most recent annual report on Form 10-K, Hamilton has two Mexican subsidiaries—Grupo HB/PS S.A. de C.V. and Hamilton Beach Brands de Mexico S.A. de C.V.
The complaint alleges that throughout the Class Period, 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.”
Following 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.
Please visit our website to review more information and submit your transaction information. If you suffered a loss you have until July 21, 2020 to request that the Court appoint you as lead plaintiff.
The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar