|By PR Newswire||
|February 21, 2014 03:29 PM EST||
NEW YORK, Feb. 21, 2014 /PRNewswire/ -- Pomerantz LLP has filed a class action lawsuit against Nu Skin Enterprises, Inc. ("Nu Skin" or the "Company") (NYSE: NUS) and certain of its officers. The class action, filed in United States District Court, District of Utah, and docketed under 14-cv-00049-DBP, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Nu Skin securities between October 25, 2011 and January 15, 2014 both dates inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Nu Skin securities during the Class Period, you have until March 21, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Nu Skin is a global direct selling company. The Company distributes premium quality personal skin care products and nutritional supplements. Nu Skin markets its products in the Americas, Europe, and the Asia Pacific region. The Company provides marketing and distribution of technology-based products through Big Planets, Inc.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company's operations in the People's Republic of China ("PRC") engaged in pyramid selling schemes in violation of PRC law; and (ii) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On August 7, 2012, Citron Research published an analyst report alleging that Nu Skin's operations in the People's Republic of China were nothing more than a pyramid scheme based on multi-level marketing and that such schemes are strictly prohibited in China. On this news, Nu Skin stock declined $6.90 per share or over 14%, within two trading sessions, to close at $41.96 per share on August 8, 2012.
On February 14, 2013, the Federal Trade Commission published over 200 pages of documents pursuant to a request under the Freedom of Information Act ("FOIA") of consumer complaints regarding Nu Skin from the past five years. On this news, Nu Skin's stock declined $0.99 per share or 2.3%, to close at $42.93 per share on February 14, 2013.
On January 15, 2014, a leading Chinese newspaper reported that the Company operates an illegal pyramid scheme in China, and employs unlawful business practices in violation of PRC law. In response to that news, the Company's stock declined $20.78 per share to $115.23, or more than 15.2%, on January 15, 2014.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
SOURCE Pomerantz LLP