Shareholder rights law firm Robbins LLP announces that it is investigating HF Foods Group, Inc. (NASDAQ: HFFG) for alleged violations of the Securities Exchange Act of 1934 and whether the Company's officers and directors breached their fiduciary duties to shareholders. HF Foods markets and distributes fresh produce, frozen and dry food products, and non-food products to Asian restaurants and other foodservice customers throughout the United States.
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HF Foods Group, Inc. (HFFG) Fails to Disclose Related Party Transaction
On June 25, 2019, HF Foods filed a Form 8-K describing its merger with B&R. Then, on March 23, 2020, Hindenburg Research published a report revealing that HF Foods had failed to disclose: (i) transactions with related-parties; (ii) its flagrant misuse of shareholder funds; and (iii) its gaming of the FTSE/Russell Index criteria. According to the report, "HF's massive $509 million merger with food distributor B&R appears to be a blatant undisclosed related-party transaction" and they believed "insiders are using these dozens of related-party transactions to suck cash out of the business, eventually leaving shareholders with a hollow, debt-laden company." On this news, HF Foods' stock price fell over 20% to close at $9.80 per share.
HF Foods Group, Inc. (HFFG) Shareholders Have Legal Options
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