April 24, 2015
Bernstein Liebhard LLP is investigating whether (i) Hanesbrands Inc. (“Hanes” or the “Company”) (NYSE: HBI) issued materially false and misleading statements to investors in violation of the federal securities laws; or (ii) the Board of Directors of Hanes breached their fiduciary duties to shareholders.
Hanes is a consumer goods company that designs, manufactures, sources, and sells a range of basic apparels for men, women, and children in the United States. On April 24, 2015, the Company surprised the market by reporting revenue of $1.21 billion for the first quarter of 2015, $200 million lower than analysts’ estimates. Hanes also reported earnings of 22 cents per share for the quarter, below analysts’ expectations of 23 cents per share. As a result, Hanes stock fell almost 6%.
During and slightly after the first quarter, between January 1, 2015 and April 8, 2015, Hanes CEO and Chairman of the Board Richard Noll sold approximately $76 million in Hanes stock – a staggering amount – $66 million of which he sold since March 11, 2015 alone. Selling by Hanes insiders totaled approximately $80 million since the first of the year. This selling is suspicious because Hanes insiders made these sales during and slightly after the first quarter – the quarter for which Hanes announced results that surprised analysts.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. The National Law Journal has recognized Bernstein Liebhard for twelve consecutive years as one of the top plaintiffs’ firms in the country.