August 24, 2015 (Shareholders Foundation) - An investigation on behalf of investors of Caesarstone Sdot-Yam Ltd (NASDAQ:CSTE) shares over potential securities laws violations by Caesarstone Sdot-Yam and certain of its directors and officers in connection certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Caesarstone Sdot-Yam Ltd (NASDAQ:CSTE) concerning whether a series of statements by Caesarstone Sdot-Yam regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

Caesarstone Sdot-Yam Ltd reported that its annual Total Revenue rose from $259.67 million in 2011 to $447.40 million in 2014 and that its respective Net Income increased from $29.05 million to $78.44 million.

Shares of Caesarstone Sdot-Yam Ltd (NASDAQ:CSTE) grew from $45.98 per share in October 2014 to as high as $71.74 per share in late July 2015.

Then on August 19, 2015, an analyst firm published a report on Caesarstone Sdot-Yam Ltd asserting, among other things, thata Freedom of Information Act request to the SEC revealed that the cost of quartz rose substantially by ~20% in 2014, yet Caesarstone Sdot-Yam Ltd told investors in its SEC filings the impact was just 4%, that independent lab tests show Caesarstone Sdot-Yam Ltds samples may contain less quartz than advertised, that Caesarstone Sdot-Yam Ltds reported consolidated margins may be overstated, and that proprietary U.S. import shipping data collected from port documents indicates that Caesarstone Sdot-Yam Ltds North American market share may not be growing as claimed.

Shares of Caesarstone Sdot-Yam Ltd (NASDAQ:CSTE) dropped from over $71 per share in late July to as low as $39.77 per share on August 19, 2015.