Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm
representing investors, updates purchasers of Nu Skin Enterprises, Inc.
(NYSE: NUS) ("Nu Skin" or "the Company") stock that the Class Period now
covers investors who purchased between Oct. 25, 2011, and Jan. 16, 2014,
and that the deadline for filing to be a lead plaintiff is still March
24, 2014. Investors who suffered significant financial losses related to
the case can email NUS@hbsslaw.com
for more information.
Three 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 bought stock in the
Company during the Class Period, have significant losses in excess of
$100,000 and 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 complaints, Nu Skin's Chinese 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
th days following the publication of the article.
According to the suits, 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 one third
of Nu Skin's total sales. Hagens Berman's investigation shows, according
to data compiled by Citron Research, that a major Chinese newspaper
published an exposé on "illegal" operations in China, in June 2013. Nu
Skin never revealed this exposé to investors and did not seek to address
the allegations until the announcement of the Chinese government's
investigation in January 2014.
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 previous figures, closing at $84 on
Feb. 24, 2014.
Bloomberg reported on Feb. 17, 2014, that China's State Administration
for Industry and Commerce plans to tighten direct selling rules,
following the claims brought against Nu Skin.
Hagens Berman is continuing to investigate what Nu Skin's management
knew, and when, in light of the Chinese government's investigations and
the subsequent decline of the stock price.
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
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 Hagens Berman and its successes can be found at www.hb-securities.com.
The Firm's Securities News newsletter is at http://www.hb-securities.com/newsletter.
The Firm's blog is located at www.meaningfuldisclosure.com.
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