An investor in NASDAQ:DSKX shares filed a lawsuit in the U.S. District Court for the Southern District of Florida over alleged violations of Securities Laws by DS Healthcare Group Inc.
Investors who purchased shares of DS Healthcare Group Inc (NASDAQ:DSKX) have certain options and for certain investors are short and strict deadlines running. Deadline: May 31, 2016. NASDAQ:DSKX investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
According to the complaint the plaintiff alleges on behalf of purchasers of DS Healthcare Group Inc (NASDAQ:DSKX) common shares between August 13, 2015 and March 23, 2016, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between August 13, 2015 and March 23, 2016 the defendants made false and/or misleading statements and/or failed to disclose that the unaudited condensed consolidated financial statements for the two fiscal quarters ended June 30, 2015 and September 30, 2015 improperly recognized revenues related to certain DS Healthcare Group customers, which did not meet revenue recognition criteria, that the unaudited condensed consolidated financial statements for the two fiscal quarters ended June 30, 2015 and September 30, 2015 contained certain equity transactions for the periods ended June 30, 2015 and September 30, 2015 that were not in accordance with United States Generally Accepted Accounting Principles and which were also not properly disclosed, that the Defendant Khesin violated his fiduciary duty to DS Healthcare Group and its subsidiaries, and that as a result, defendants’ statements DS Healthcare Group’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On March 23, 2016, DS Healthcare Group Inc disclosed that the Company’s prior financial statements should no longer be relied upon, due to revenue recognition errors and improper recording of certain equity transactions. DS Healthcare Group Inc said it discussed these issues with its Audit Committee and independent accounting firm, and plans to restate the relevant Company financial statements as soon as possible. Additionally, DS Healthcare Group Inc disclosed that the Audit Committee and independent counsel had started an investigation into the Company President, Daniel Khesin’s, involvement in the allegedly fraudulent revenue recognition and equity transaction errors; and that Mr. Khesin’s employment as President of DS Healthcare Group Inc has been terminated for cause based on the current results of the investigation. Shares of DS Healthcare Group Inc (NASDAQ:DSKX) declined to as low as $0.65 per share on March 24, 2016.
Those who purchased NASDAQ:DSKX shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com