HF Foods Group Inc. (NASDAQ: HFFG) Investor Securities Class Action Lawsuit 03/29/2020

If you purchased a significant amount of shares of HF Foods Group Inc. (NASDAQ: HFFG) between August 23, 2018 and March 23, 2020, and / or if you purchased any NASDAQ: HFFG shares prior to August 2018 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: May 28, 2020. NASDAQ: HFFG investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
HF Foods Group
Case Name: 
HF Foods Group Shareholder Class Action Lawsuit 03/29/2020
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: HFFG
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
03/29/2020
Class Period Begin: 
08/23/2018
Class Period End: 
03/23/2020
Court of Filing: 
U.S. District Court for the Central District of California
Deadline To File for Lead: 
05/28/2020
Summary: 

An investor in shares of HF Foods Group Inc. (NASDAQ: HFFG) filed a lawsuit in the U.S. District Court for the Central District of California over alleged violations of Federal Securities Laws by HF Foods Group Inc. in connection with certain allegedly false and misleading statements made between August 23, 2018 and March 23, 2020.

Greensboro, NC based HF Foods Group Inc., through its subsidiaries, markets and distributes fresh produces, frozen and dry food products, and non-food products to Asian restaurants, primarily Chinese restaurants, and other foodservice customers throughout the Southeast, Pacific, and Mountain West regions in the United States. HF Foods Group Inc. reported that its annual Total Revenue rose from $291 million in 2018 to $388.16 million in 2019, and that its Net Income declined from $6.28 million in 2018 declined from $6.35 million in 2018 to $5.39 million in 2019.

On March 23, 2020, Hindenburg Research released a report alleging that HF Foods engaged in "massive undisclosed related-party transactions," that shareholder money was "spent on exotic supercars," and that the Company had an "outrageous fundamental valuation."

Shares of (NASDAQ: HFFG) declined from $27.65 per share in November 2019 to as low as $7.50 per share on March 16, 2020.

According to the complaint the plaintiff alleges on behalf of purchasers of HF Foods Group Inc. (NASDAQ: HFFG) common shares between August 23, 2018 and March 23, 2020, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between August 23, 2018 and March 23, 2020, the defendants made false and/or misleading statements and/or failed to disclose that HF Foods engaged in undisclosed related party transactions, that HF Foods insiders and related parties were enriching themselves by misusing shareholder funds, that HF Foods was “gaming” the FTSE/Russell Index by masking the true number of shares free floating, and that as a result, defendants’ public statements were materially false and/or misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.