Robbins LLP: DS Healthcare Group, Inc. (DSKX) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against DS Healthcare Group, Inc. (NASDAQCM: DSKX) in the U.S. District Court for the Southern District of Florida. The plaintiff brings the complaint on behalf of all purchasers of DS Healthcare securities between August 13, 2015 and March 23, 2016, for alleged violations of the Securities Exchange Act of 1934 by DS Healthcare’s officers and directors. DS Healthcare, doing business as DS Laboratories, discovers and develops drug therapies for specialty pharmaceuticals, and commercializes personal care products for its consumer brands in North America and internationally.
DS Healthcare Accused of Misrepresenting its Financial Condition
According to the complaint, throughout 2015, DS Healthcare submitted multiple filings with the U.S. Securities and Exchange Commission (“SEC”) and issued several press releases discussing the company’s positive financial condition. The company represented that it was optimistic that it would continue to be profitable and drive shareholder value while continuously operating at the top of its industry. However, the complaint alleges that these statements were misleading because the unaudited condensed consolidated financial statements for the two fiscal quarters ended June 30, 2015 and September 30, 2015, improperly recognized revenues and contained certain equity transactions that were not in accordance with the U.S. Generally Accepted Accounting Principles and were not properly disclosed.
On March 23, 2016, DS Healthcare filed a Form 8-K with the SEC disclosing errors in its unaudited condensed consolidated financial statements for the two fiscal quarters ended June 30, 2015 and September 30, 2015, and stating that these financial statements should no longer be relied upon. DS Healthcare further stated that it will restate the financial statements for those periods, and that the adjustments will be material to investors when finalized. DS Healthcare also disclosed that its Board of Directors terminated Daniel Khesin as President for cause and removed him as its Chairman of the Board for cause because they believed he violated his fiduciary duty to the company and its subsidiaries and may have violated federal law. On this news, DS Healthcare stock fell $0.47 per share, or over 35%, to close at $0.86 per share on March 24, 2016.
DS Healthcare Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.