Hain Celestial Investors Get Distribution Practices Suit Revived

Hain Celestial Group Inc. investors adequately alleged securities fraud in the natural foods company’s description of its distributor sales practices, the Second Circuit said Monday, reviving the suit for a second time.

The investors adequately alleged Hain and its top executives made misstatements and omissions about giving distributors concessions to buy more product up front, and did so with the necessary level of intent, Judge Robert D. Sack said for the US Court of Appeals for the Second Circuit.

The proposed class action about accounting misrepresentations dates to 2016. Judge Arthur D. Spatt of the US District Court for the ...