NEW YORK, April 01, 2016 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against DS Healthcare Group, Inc. (“DS Healthcare” or the “Company”) (Nasdaq:DSKX) in the United States District Court for the Southern District of Florida on behalf of a class consisting of all persons or entities who purchased DS Healthcare securities between August 13, 2015 and March 23, 2016, inclusive (the “Class Period”).  This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).

The Complaint alleges that during the Class Period, Defendants made false and/or misleading statements about the Company’s business, operations and prospects.  As a result of Defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.

According to the Complaint, on March 23, 2016 after the market closed, DS Healthcare filed a Form 8-K (the “Form 8-K”) with the SEC which disclosed errors in its unaudited condensed consolidated financial statements for the two fiscal quarters ended June 30, 2015 and September 30, 2015 and stated these financial statements should no longer be relied upon.  DS Healthcare further stated that it will restate the financial statements for two fiscal quarters ended June 30, 2015 and September 30, 2015, and that the adjustments will be material to investors when finalized.  These errors related to revenue recognition for certain customers and certain equity transactions.  Additionally, Defendant DS Healthcare disclosed that its Board of Directors terminated Defendant Khesin as its President for cause and removed him as its Chairman of the Board for cause.

On this news, shares of DS Healthcare dropped over 35%, closing at $0.86 per share on March 24, 2016, on heavy trading volume.

If you wish to serve as lead plaintiff, you must move the Court no later than May 31, 2016.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

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