SEC, Hain Celestial Settle Stock Options Case

BROOKLYN, N.Y.The Securities and Exchange Commission (SEC) and Hain Celestial Group, Melville, N.Y., reached a settlement regarding charges the Melville, N.Y.-based natural foods company backdated and re-priced stock option grants. SEC filed the settled action in the U.S. District Court for the Eastern District of New York, alleging that from at least 1998 to 2002, Hain fraudulently backdated stock options granted to company officers, directors and employees, and reported false information to shareholders related to millions of dollars in expenses and overstated its income.

Hain Celestial originally reviewed selected grants in mid-2006, after the company received inquiries regarding its stock option practices. It was contacted by SEC staff in mid-2007 and appointed a group of independent directors with outside counsel to conduct a detailed review of Hains stock options practices.

As part of the Sept. 3, 2009, settled filing, Hain Celestial consented to the entry of the final judgment without admitting or denying any of the factual findings in the complaint. The company will not be required to pay any monetary penalty; however, Hain has consented to a permanent injunction from violating securities laws in the future.