Faruqi & Faruqi, LLP is Investigating DS Healthcare Group, Inc. (DSKX) on Behalf of its Shareholders
Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential misconduct at DS Healthcare Group, Inc. (“DS Healthcare” or the “Company”).
The investigation focuses on whether certain of the Company’s directors and/or officers committed mismanagement and breached their fiduciary duties by failing to maintain an effective system of internal controls. On March 23, 2016, DS Healthcare announced that its previously issued financial statements for the two fiscal quarters ended June 30, 2015 and September 30, 2015 (the “June and September 2015 Quarters”) should no longer be relied upon because of certain errors in those financial statements. Based on the knowledge of the Company’s Audit Committee, these errors include: (i) revenues recognized related to certain customers of the Company that did not meet revenue recognition criteria in the June and September 2015 Quarters; and (ii) certain equity transactions in the June and September 2015 Quarters that were not properly recorded in accordance with United States Generally Accepted Accounting Principles and also were not properly disclosed. The Company believes that the adjustments to these interim financial statements will be material when finalized, and intends to file amendments to the Form 10-Q Quarterly Reports for the June and September 2015 Quarters, as well as restate the financial statements contained in those interim reports as soon as possible.
Additionally, the Company announced that on February 29, 2016, the Audit Committee of the Board of Directors (the “Board”) of DS Healthcare engaged independent counsel to conduct an investigation regarding certain transactions involving Daniel Khesin, the Company’s President and Chairman of the Board, and other individuals. The investigation is ongoing and includes, but is not limited to, the foregoing transactions involving revenue recognition and equity transactions in the June and September 2015 Quarters. On March 17, 2016, the members of the Board, other than Mr. Khesin, terminated Mr. Khesin’s employment with the Company and his employment for cause based on the Board’s conclusion that Mr. Khesin breached his fiduciary duty to the Company and its subsidiaries.
If you currently own DS Healthcare stock and would like to discuss your legal rights, please fill out the form below. You can also contact us by calling Stuart Guber toll free at (215) 277-5770 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding DS Healthcare’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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Stuart J. Guber
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330
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