|By PR Newswire||
|March 11, 2014 05:00 PM EDT||
RADNOR, Pa., March 11, 2014 /PRNewswire/ -- The following statement was issued today by the law firm of Kessler Topaz Meltzer & Check, LLP:
Kessler Topaz Meltzer & Check, LLP has filed a class action lawsuit in the United States District Court for the District of Utah on behalf of purchasers of the securities of Nu Skin Enterprises, Inc. (NYSE: NUS) ("Nu Skin" or the "Company") between July 10, 2013 and January 14, 2014, inclusive (the "Class Period").
Kessler Topaz reminds Nu Skin shareholders that they may, no later than March 24, 2014, move the Court for appointment as a lead plaintiff of the Class. If you are a member of this class, you may view a copy of the Complaint or request information about this class action online at http://www.ktmc.com/cases_details.php?id=179.
Nu Skin is a global direct-sales company which distributes anti-aging personal skin care products and nutritional supplements under the Nu Skin and Pharmanex brands in 53 international markets, including Greater China, North Asia, the Americas, Europe, the Asia Pacific region, the Middle East, and Africa. Nu Skin reported global revenue of $2.2 billion for fiscal 2012. Sales in Mainland China accounted for a significant portion of the Company's total revenue prior to, and during, the Class Period.
The Complaint alleges that, throughout the Class Period, Nu Skin made materially false and misleading statements regarding the Company's business, operational and compliance policies. More specifically, the Complaint charges Nu Skin and certain of its executive officers with violations of the Securities Exchange Act of 1934, and alleges that the defendants made false and misleading statements and failed to disclose or indicate that: (i) the Company's operations in China were based on pyramid selling schemes in violation of People's Republic of China ("PRC") law; (ii) the Company's revenues would be significantly impacted when such practices came to light; (iii) the Company lacked adequate internal and financial controls; and (iv) as a result, the Company's financial statements were materially false and misleading at all relevant times.
On January 15, 2014, a leading Chinese newspaper, People's Daily, reported that Nu Skin operates an illegal pyramid scheme in China, that it employs unlawful and immoral business practices in violation of PRC law, and that it sells more products than the Chinese government allows. On this news, shares of the Company's stock fell $21.24 per share, or over 15.5 percent, to close on January 15, 2014 at $115.23 per share.
On January 16, 2014, China's State Administration for Industry and Commerce reported that it would investigate Nu Skin after the People's Daily report. Nu Skin also independently confirmed that the Company's business practices were under investigation by Chinese authorities, and disclosed that it had initiated a review of the relevant business segments and that "there will likely be a negative impact on China revenue" as it worked through the "evolving situation." On this news, shares of the Company's stock fell an additional $30.43 per share, or over 26.4 percent, to close on January 16, 2014 at $84.80 per share.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP (Darren J. Check, Esq., D. Seamus Kaskela, Esq. or Adrienne O. Bell, Esq.) toll free at (888) 299-7706 or (610) 667-7706, or via e-mail at [email protected]. For additional information about this lawsuit, or to request information about this class action online, please visit http://www.ktmc.com/cases_details.php?id=179.
Members of the class may, no later than March 24, 2014, move the Court to serve as a lead plaintiff of the class. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision of whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Kessler Topaz Meltzer & Check, which prosecutes class actions in both state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
Darren J. Check, Esq.
D. Seamus Kaskela, Esq.
Adrienne O. Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(888) 299-7706 (toll free) or (610) 667-7706
SOURCE Kessler Topaz Meltzer & Check, LLP