Channel-Stuffing Scheme, Other Securities Law Claims Dismissed With Prejudice

Mealey's (April 14, 2020, 5:46 PM EDT) -- NEW YORK — Lead plaintiffs in a securities class action against a manufacturer of natural food and personal care products and certain of its current and former senior executives have failed to remedy pleading deficiencies in arguing that the defendants engaged in an illegal “channel-stuffing” scheme by sending an excessive amount of product to the company’s distributors to conceal a drop in demand for its products, a federal judge in New York ruled April 6 in dismissing the lead plaintiffs’ claims with prejudice (In re The Hain Celestial Group Inc. Securities Litigation, No. 16-4581, E.D. N.Y., 2020 U.S. Dist. LEXIS 60379)....