Robbins Umeda LLP Announces an Investigation of Swisher Hygiene Inc.
Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Swisher Hygiene Inc. (NASDAQ: SWSH). Concerned shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Gregory E. Del Gaizo at (800) 350-6003.
Robbins Umeda LLP is investigating whether officers and directors at Swisher Hygiene breached their fiduciary duties to shareholders by causing the company to improperly account for corporate acquisitions, overstate income, and issue improper statements related to Swisher Hygiene’s business and operations. In particular, on March 28, 2012, Swisher Hygiene filed documents with the U.S. Securities and Exchange Commission announcing that the company’s financial statements for the quarterly periods ended on March 31, June 30, and September 30, 2011 should no longer be relied upon. Swisher Hygiene announced that the company may be required to restate financial results for these periods, and that preliminary estimates indicate the company will need to increase net losses before income taxes by $3.6 million for the affected periods. The company also disclosed that these revelations resulted from an internal review by Swisher Hygiene’s Audit Committee that was initiated after a former employee raised concerns about the company’s accounting practices.
Following this announcement, shares of Swisher Hygiene declined by as much as 20% by the end of trading on March 29, 2012. Furthermore, on April 12, 2012, the company filed a Form 8-K disclosing that Swisher Hygiene received a letter from the NASDAQ indicating that the company was not in compliance with the filing requirements for continued listing on the exchange and that it would have 60 days from April 11, 2012 to regain compliance. Since these facts have emerged, Swisher Hygiene has increasingly become the focus of costly public and legal scrutiny that continues to undermine the company’s prospects and value for shareholders.
Robbins Umeda LLP highlights that Swisher Hygiene shareholders have the option to file a shareholder derivative action to hold those officers and directors accountable for damaging the company. Remedies commonly sought in derivative actions include corporate governance reforms designed to prevent future misconduct, removal of officers or directors whose misconduct injured the corporation, and monetary payments in the form of damages and disgorgement of ill-gotten gains.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.