Kaskela Law LLC is investigating HF Foods Group Inc. (“HF Foods” or the “Company”) (NASDAQ: HFFG) on behalf of the Company’s stockholders.
Recently an amended securities fraud complaint was filed against HF Foods on behalf of investors who purchased shares of the Company’s common stock between August 23, 2018 and November 9, 2020. According to the complaint, during that time period HF Foods and certain of the Company’s executive officers made a series of false and/or misleading statements to investors regarding HF Foods’ business, operational, and compliance policies.
The complaint further alleges how, on March 23, 2020, Hindenburg Research published a report (the “Report”) “exposing materially adverse facts about HF Foods, including its failure to disclose: (i) transactions with related parties; (ii) its flagrant misuse of shareholder funds, including an undisclosed fleet of luxury vehicles worth approximately $1.5 million … as well as through numerous other related party transactions; and (iii) its gaming of the FTSE/Russell Index criteria.” Following this news, shares of HF Foods’ stock fell over 20% in value, to close at $9.80 per share on March 23, 2020.
Then, on November 9, 2020, the Company “stunned the public by disclosing a formal SEC investigation, as well as a previously undisclosed internal investigation” relating to the claims in the Report. Following this additional news, shares of HF Foods’ stock declined an additional 10% in value, to close at $7.18 per share on November 10, 2020.
The investigation seeks to determine whether the members of HF Foods’ board of directors breached their fiduciary duties to the Company and its stockholders in connection with the above alleged misconduct.
Current HF Foods stockholders who purchased or acquired shares of HF Foods’ common stock prior to March 23, 2020 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (484) 258 – 1585, or by completing the information form on this page, for additional information about this investigation and their legal rights and options.