|By PR Newswire||
|March 21, 2014 04:23 PM EDT||
RADNOR, Pa., March 21, 2014 /PRNewswire/ -- The following statement was issued today by the law firm of Kessler Topaz Meltzer & Check, LLP:
Notice is hereby given that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of Weight Watchers International, Inc. (NYSE: WTW) ("Weight Watchers" or the "Company") between February 14, 2012 and October 30, 2013, inclusive (the "Class Period").
Weight Watchers shareholders may, no later than May 20, 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 action online at http://www.ktmc.com/cases_details.php?id=192.
Weight Watchers is a provider of weight management services, operating globally through a network of Company-owned and franchise operations. The Complaint alleges that, throughout the Class Period, Weight Watchers made materially false and misleading statements and/or concealed material adverse facts regarding the Company's business and operations. More specifically, the Complaint charges Weight Watchers 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 that overstated the Company's prospects and understated the level of competition it faced from free weight loss apps, causing Plaintiff and other members of the Class to purchase Weight Watchers common stock at artificially inflated prices.
On February 14, 2012, Weight Watchers announced financial results and provided a 2012 earnings guidance range of between $4.20 and $4.60 per share. The Company also announced that it planned to launch a tender offer for up to $720 million of its common stock, and that it separately had agreed to purchase shares held by Artal Group, its controlling shareholder. On February 14, 2012, Weight Watchers common stock was trading at $79 per share. The tender offer closed on March 22, 2012.
On February 13, 2013, Weight Watchers announced its fourth quarter and fiscal 2012 financial results, and disclosed that it expected to earn between $3.50 and $4.00 per share for the year, sharply missing analyst estimates of $4.75 per share. On this news, Weight Watchers' stock fell $9.20 per share, or 17%, to close at $44.91 per share on February 14, 2013.
Finally, on October 30, 2013, the defendants admitted that steep declines in recruitment caused by a wave of free apps were undermining revenues, forcing the Company to indefinitely suspend the regular dividend it had paid to investors since 2006. On this news, Weight Watchers' stock fell an additional $7.81 per share, or over 19%, to close at $32.11 per share on October 31, 2013.
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 action online, please visit http://www.ktmc.com/cases_details.php?id=192.
Members of the class may, no later than May 20, 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