Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm
representing investors, reminds purchasers of Nu Skin Enterprises, Inc.
(NYSE: NUS) (“Nu Skin” or “the Company”) stock that the Class Period has
been extended to cover investments between July 10, 2013, and Jan. 16,
2014, and that the 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 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.
According to the complaint, Nu Skin’s business model 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
Nu Skin’s 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 well below, closing a low as $68.90 on Feb. 6,
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.
“Based on our investigation, we believe that more and more, Nu Skin
inflated the value of their stock tremendously through this illegal and
unethical pyramid scheme,” said Hagens Berman Partner Reed Kathrein, who
is leading the firm’s investigation. “Nu Skin and its executives were
aware of or blatantly ignored allegations of these activities without
informing its investors, and we intend to carry out our investigation on
behalf of the shareholders who suffered tremendous losses.”
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. 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.
Copyright Business Wire 2014