Press release from Business Wire
Hagens Berman Informs Investors of Extended Class Period and Deadline to File For Lead Plaintiff in Nu Skin Enterprises Class Action
Tuesday, January 28, 2014
Hagens Berman Informs Investors of Extended Class Period and Deadline to File For Lead Plaintiff in Nu Skin Enterprises Class Action14:30 EST Tuesday, January 28, 2014
BERKELEY, Calif. (Business Wire) -- Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm representing investors, wishes to inform purchasers of Nu Skin Enterprises, Inc. (NYSE: NUS) (“Nu Skin” or “the Company”) stock that the Class Period had been extended to cover investments between Oct. 25, 2011, and Jan. 15, 2014, and that the correct deadline for filing to be a lead plaintiff is March 24, 2014. Investors who suffered significant financial losses related to the case can email NUS@hbsslaw.com for more information.
Two lawsuits have now been filed in the Utah District Court alleging that Nu Skin made false or misleading representations to investors regarding its business in China, and risks to its business. These cases will likely be consolidated into one case. If you wish to serve as a lead plaintiff in these cases, please contact Hagens Berman Partner Reed Kathrein, who is leading the firm's investigation, by calling (510) 725-3000. Additional information is available at http://hb-securities.com/investigations/NUS.
Nu Skin's business model, according to the lawsuit, relies on independent distributors who recruit more distributors and then earn a piece of their sales. On Jan. 15, 2014, a Chinese newspaper reported that Nu Skin was in violation of Chinese laws that prohibit pyramid schemes. Two Chinese agencies announced investigations of the company in the days following the publication of the article.
According to the suit, revenue from China played a significant role in the company's growth over the last several years. The Wall Street Journal reported that sales in China accounted for nearly a third of total sales.
Following the announcement of the Chinese government's investigation, Nu Skin's stock price declined dramatically, losing nearly half of its value in three days of trading. The stock price fell from a close of $136.47 on Jan. 14, 2014, to a close of $79.57 on Jan. 17, 2014. The stock continues to trade around $80.00, closing at $80.40 on Jan. 27, 2014.
Hagens Berman is investigating Nu Skin's statements to investors, including disclosures of financial results and quarterly conference calls, in light of the Chinese government's investigations and the subsequent decline of the stock price.
“We believe that Nu Skin aggressively pursued expansion in Mainland China, knowing that it or persons working for Nu Skin were likely running afoul of China laws,” said Mr. Kathrein. “Nu Skin and its executives knew that or turned a blind eye to allegations of its illegal pyramid activities without disclosing these serious allegations to investors.”
The deadline for investors to move for lead plaintiff in the case is March 24, 2014.
Persons with non-public information who want to consider their options to help in the investigation or take advantage of the SEC Whistleblower program may contact Reed Kathrein at 510-725-3000 or email the firm at NUS@hbsslaw.com for more information. Under the new SEC Whistleblower program, whistleblowers who provide original information to the SEC may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.
About Hagens Berman
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in nine cities, including the San Francisco Bay Area. The Firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the law firm and its successes can be found at www.hb-securities.com. The Firm's Securities Newsletter is at http://www.hb-securities.com/newsletter. The firm's blog is located at www.meaningfuldisclosure.com.
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