September 25, 2020 - The case was voluntarily dismissed.

May 22, 2020 - An investor in shares of Hamilton Beach Brands Holding Company (NYSE: HBB) filed a lawsuit in the U.S. District Court for the Eastern District of New York over alleged violations of Federal Securities Laws by Hamilton Beach Brands Holding Company in connection with certain allegedly false and misleading statements made between February 27, 2020, and May 8, 2020.

Glen Allen, VA based Hamilton Beach Brands Holding Company, together with its subsidiaries, designs, markets, and distributes small electric household and specialty housewares appliances. Hamilton Beach Brands Holding Company reported that its annual Total Revenue declined from $743.17 million in 2018 to $612.84 million in 2019, and that its Net Income of $21.78 million in 2018 declined to a Net Loss of $3.52 million in 2019.

On May 11, 2020, Hamilton Beach Brands Holding Company announced that it could not timely file its 1Q20 10-Q because of “certain accounting irregularities with respect to the timing of recognition of selling and marketing expenses and the classification of certain expenditures within the statement of operations at its Mexican subsidiary.” Hamilton further stated that its “Audit Review Committee has commenced an internal investigation” regarding “the realizability of certain assets of the Mexican subsidiary.” Shares of Hamilton Beach Brands Holding Company (NYSE: HBB) declined from $21.14 per share in November 2019 to as low as $8.40 per share on March 14, 2020.

According to the complaint the plaintiff alleges on behalf of purchasers of Hamilton Beach Brands Holding Company (NYSE: HBB) common shares between February 27, 2020, and May 8, 2020, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between February 27, 2020, and May 8, 2020, the Defendants failed to disclose to investors that Hamilton had inadequate disclosure controls and procedures and internal control over financial reporting, particularly with respect to one of its Mexican subsidiaries, that consequently, the Company’s accounting included certain irregularities with respect to the timing of recognition of selling and marketing expenses and the classification of certain expenditures within the statement of operations at this Mexican subsidiary, as well as potential misconduct with respect to the realizability of certain assets of the Mexican subsidiary, that as a result of all the foregoing, Hamilton could not accurately attest to its financial results, particularly with respect to these metrics, and was consequently at an increased risk of delaying the filing of its periodic reports with the SEC, and that as a result, the Company’s public statements were materially false and misleading at all relevant times.