BERWYN, Pa., March 9, 2017 /PRNewswire/ -- RM LAW, P.C. announces that a class action lawsuit has been filed in United States District Court for the District of Utah on behalf of all persons or entities that purchased USANA Health Sciences, Inc. ("USANA" or the "Company") (NYSE: USNA) securities between March 14, 2014 and February 13, 2017, inclusive (the "Class Period").
USANA shareholders may, no later than April 14, 2017, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of USANA and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, visit: www.maniskas.com.
USANA develops, manufactures, and sells science-based nutritional and personal care products primarily to reduce the risk of chronic degenerative disease.
On August 16, 2010, USANA announced that it had acquired BabyCare Ltd. ("BabyCare"), a China-based manufacturing company that develops and sells nutritional products primarily for infants. Over the next six years, USANA steadily expanded BabyCare's market presence in China. In February 2013, the Company announced that it had received official government approval from the Ministry of Commerce People's Republic of China ("MOFCOM") for direct selling activities in the provinces of Jiangsu and Shaanxi, and the municipality of Tianjin. In May 2016, USANA announced MOFCOM approval for direct selling activities in the provinces of Liaoning, Shandong, Shanxi, Sichuan, and Guangdong, as well as the municipalities of Dalian, Qingdao, and Shenzhen.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company's BabyCare subsidiary had engaged in improper reimbursement practices in China; (ii) these practices constituted violations of the Foreign Corrupt Practices Act ("FCPA"); (iii) as such, the Company's China revenues were in part the product of unlawful conduct and unlikely to be sustainable; (iv) the foregoing conduct, when it became known, was likely to subject the Company to significant regulatory scrutiny; and (v) as a result of the foregoing, USANA's public statements were materially false and misleading at all relevant times.
On February 7, 2017, post-market, USANA disclosed that "[t]he Company is voluntarily conducting an internal investigation of its China operations, BabyCare Ltd. . . . focus[ing] on the compliance with the Foreign Corrupt Practices Act . . . and certain conduct and policies at BabyCare, including BabyCare's expense reimbursement policies." USANA advised investors that the Company had retained outside counsel to conduct the investigation and had notified both the SEC and the U.S. Department of Justice of the investigation.
On this news, USANA's share price fell $7.25, or 11.57%, to close at $55.40 on February 8, 2017.
If you are a member of the class, you may, no later than April 14, 2017, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed 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. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.
For more information regarding this, please contact RM LAW, P.C. (Richard A. Maniskas, Esquire) toll-free at (844) 291-9299 or by email at firstname.lastname@example.org or visit: www.maniskas.com. For more information about class action cases in general or to learn more about RM LAW, P.C. please visit our website: www.maniskas.com.
RM LAW, P.C. is a national shareholder litigation firm. RM LAW, P.C. is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.
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SOURCE RM LAW, P.C.