NEW YORK, Feb. 12, 2016 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Natural Health Trends Corp. ("Natural Health Trends" or the "Company")(NASDAQ: NHTC) and certain of its officers. The class action, filed in United States District Court, Central District of California, and docketed under 16-cv-00309, is on behalf of a class consisting of all persons or entities who purchased Natural Health Trends securities between March 6, 2015 and January 12, 2016 inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Natural Health Trends securities during the Class Period, you have until March 14, 2016 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, and failed to disclose material adverse facts pertaining to Natural Health Trends' business, operations, prospects and performance. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the operations of Natural Health Trends' Chinese entity is not in compliance with applicable Chinese laws; and (2) as a result, Defendants' statements about Natural Health Trends' business, operations, and prospects, were false and misleading and/or lacked a reasonable basis at all relevant times.
On January 7, 2016, Seeking Alpha published a post indicating that a newspaper investigative report published in China revealed that the Company was under investigation by Chinese authorities.
On this news, Natural Health Trends stock fell $3.11 per share, or over 10% from its previous closing price, to close at $25.92 per share on January 7, 2016, damaging investors.
On January 11, 2016, analyst firm GeoInvesting, LLC ("GeoInvesting") issued a report about the Company asserting, among other things, that: (1) according to a neighboring office employee, the Company's Beijing office was visited by uniformed authorities on or around December 25, 2015, who seized property; (2) this visit by uniformed authorities corroborates the Seeking Alpha post that the Company is under investigation for running an illegal multi-level marketing business in China; (3) on December 28, 2015, the Company posted a special notice on its official website warning its distributors to stop using its name; (4) on January 8, 2016, the Company announced the temporary suspension of its distributor website for maintenance; and (5) snapshots from the Company's Hong Kong website appear to confirm that the Company is operating an illegal multi-level marketing scheme in China.
On this news, Natural Health Trends stock fell $2.65 per share, or over 11% from its previous closing price, to close at $20.70 per share on January 11, 2016, further damaging investors.
On January 12, 2016, GeoInvesting issued another report about the Company asserting, among other things, that several reputable Chinese media sites, including SINA Finance, had earlier that morning reported that the Company had been raided and is under investigation.
On this news, Natural Health Trends stock fell $1.51 per share, or over 7% from its previous closing price, to close at $19.18 per share on January 12, 2016, further damaging investors.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
SOURCE Pomerantz LLP