LOS ANGELES--(BUSINESS WIRE)--Glancy Binkow & Goldberg LLP, representing investors of Rayonier, Inc. (“Rayonier” or the “Company”) (NYSE:RYN), has filed a class action lawsuit in the United States District Court for the Middle District of Florida with an expanded Class Period, including purchasers of Rayonier securities between July 22, 2013 and November 7, 2014, inclusive (the “Class Period”).
Rayonier engages in the sale and development of real estate and timberland management and the production and sale of cellulose fibers in the United States, New Zealand and Australia. The Complaint alleges that defendants made false and/or misleading statements and failed to disclose material adverse facts about the Company’s business, operations and prospects. Specifically, defendants misrepresented or failed to disclose that: (1) the Company incorrectly accounted for its merchantable timber inventory, understated depletion expense in cost of goods sold, and overstated income from continuing operations; (2) the Company’s financial statements were not prepared in accordance with Generally Accepted Accounting Principles; and (3) the Company lacked adequate internal and financial controls.
On November 10, 2014, the Company disclosed that the Audit Committee of the board of directors concluded that Rayonier’s interim consolidated financial statements for the quarters ended March 31, 2014, and June 30, 2014, should no longer be relied upon. Rayonier is restating its interim consolidated financial statements for those periods.
According to the Company, an internal review concluded that Rayonier “incorrectly included in merchantable timber inventory for 2014, timber in specially designated parcels located in restricted, environmentally sensitive or economically inaccessible areas.” As a result of the foregoing, the Company understated its depletion expense in cost of goods sold by approximately $2 million in each of the quarterly periods ended March 31, 2014 and June 30 2014, and overstated income from continuing operations of $1.9 million and $2.0 million, respectively, in those periods.
The Company further disclosed that management determined that there was a material weakness in Rayonier’s internal controls related to merchantable timber inventory, which were not adequate to ensure that the changes in depletion rate estimates used to recognize depletion expense in 2014 were in accordance with accounting principles generally accepted in the United States..
If you are a member of the Class described above, you may move the Court no later than January 12, 2015, to serve as lead plaintiff, if you meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, or Casey Sadler, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, Toll Free at (888) 773-9224, by e-mail to email@example.com, or visit our website at http://www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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