HF Foods Group, Inc. – HFFG: SEC Investigation Update
Probes Reporter® research provides data, commentary, and analysis on public company interactions with investors and with the SEC. Our work is heavily reliant on company disclosures and our expertise in using the Freedom of Information Act.
HF Foods Group, Inc. – HFFG: in our opinion, HF Foods Group is a troubled company. In addition to a wide array of internal controls problems, the company recently disclosed a formal SEC investigation that our research suggests has a tail back to at least April 2020. Details on the investigation are scant, making it impossible for investors to assess this material and newly disclosed risk. We are left to wonder: 1) Why did the company wait so long to disclose; and, 2) What changed that made management realize it had to? Remember, the act of disclosure itself is enough to tell you management thinks the exposure is serious.