BR&B Files Class Action Lawsuit Against Nu Skin Enterprises, Inc.
1/21/2014 - Barrack, Rodos & Bacine announces that it has filed a class action lawsuit in the United States District Court for the Utah, Freedman v. Nu Skin Enterprises, Inc., et al., Case No. 2:14-cv-00033-PMW, on behalf of purchasers of common stock of Nu Skin Enterpises, Inc. (NYSE: NUS) during the period from July 10, 2013 through and including January 14, 2014 (the “Class Period”).
The complaint charges Nu Skin and its chief executive and chief financial officers with violations of the Securities Exchange Act of 1934. Nu Skin is a global direct selling company with operations in 53 markets worldwide. The Company purports to develop and distribute premium quality anti-aging personal care products and nutritional supplements under its Nu Skin and Pharmanex brands. The Company’s global operations generated more than $2.17 billion in revenue during 2012.
The complaint alleges that during the Class Period, defendants issued a series of false and misleading statements concerning the Company’s business practices and growth prospects, particularly with respect to its Greater China operations, upon which the Company has become very dependent for a very significant amount of its revenue and its growth. Sales in Mainland China accounted for nearly one third of the Company’s total revenue in the first nine months of 2013. Further, the complaint alleges that while the Company issued public statements discussing its positive results and increased guidance, especially in light of new product introductions and increased sales in Greater China, it failed to disclose its fraudulent sales practices and non-compliance with laws and regulations in China, or their potential impact on the Company. Then, in January 2014, two Chinese agencies announced that they were probing the Company’s marketing and business practices in China and that it was suspected the Company was operating an illegal pyramid scheme. These revelations had an immediate impact on the Company’s stock price, causing shares of Nu Skin’s stock, which had risen from less than $70 per share to a high of $140.50 per share during the Class Period, to tumble over 44% in the two days of trading after these announcements. Nu Skin stock closed the trading day on January 17, 2014 at less than $80 per share.
Plaintiff seeks to recover damages on behalf of all purchasers of Nu Skin common stock during the Class Period. The plaintiff is represented by Barrack, Rodos & Bacine, which has significant experience in prosecuting shareholder claims on behalf of investors in securities cases. For more than 35 years, Barrack, Rodos & Bacine has successfully litigated major securities actions in courts throughout the United States. As compiled by the Securities Class Action Clearinghouse at Stanford University and Cornerstone Research, Barrack, Rodos & Bacine has served as a lead counsel in some of the most successful securities class action cases, recovering over $11 billion for injured investors over the past dozen years, including three of the top ten case recoveries.
If you wish to serve as a lead plaintiff and oversee the prosecution of the case, you must move the Court no later than 60 days from today. To discuss your rights regarding the appointment of lead plaintiff and for additional information about this class action, please contact plaintiff’s counsel, Barrack Rodos & Bacine, at (215) 963-0600, or via e-mail to Jeffrey W. Golan at firstname.lastname@example.org or Julie B. Palley at email@example.com. A copy of the complaint is available by clicking here.