PHILADELPHIA, Jan. 21, 2014 /PRNewswire/ -- Barrack, Rodos & Bacine announces that it has filed a class action lawsuit in the United States District Court for the District of Utah, Freedman v. Nu Skin Enterprises, Inc., et al., Civil Action No. 2:14-cv-00033-PMW, on behalf of purchasers of common stock of Nu Skin Enterprises, Inc. (NYSE: NUS) ("Nu Skin" or the "Company") during the period from July 10, 2013 through and including January 14, 2014 (the "Class Period").
Nu Skin is a global direct selling company with operations in 53 markets worldwide. The Company purports to develop and distribute premium quality anti-aging personal care products and nutritional supplements under its Nu Skin and Pharmanex brands. The Company's global operations generated more than $2.17 billion in revenue during 2012.
The complaint alleges that during the Class Period, defendants issued a series of false and misleading statements concerning the Company's business practices and growth prospects, particularly with respect to its Mainland China operations, upon which the Company has become very dependent for a very significant amount of its revenue and growth. Sales in Mainland China accounted for nearly one third of the Company's total revenue in the first nine months of 2013. Further, the complaint alleges that while the Company issued public statements discussing its positive results and increased guidance, it failed to disclose what are alleged to be fraudulent sales practices and non-compliance with laws and regulations in China, or their potential impact on the Company. Then, in January 2014, two Chinese agencies announced that they are probing the Company's marketing and business practices in China and that it was suspected the Company was operating as an illegal pyramid scheme. These revelations had an immediate impact on the Company's stock price, causing shares of Nu Skin's stock, which had risen from less than $70 per share to a high of $140.50 per share during the Class Period, to tumble over 44% in the two days of trading after these announcements. Nu Skin stock closed the trading day on January 17, 2014 at less than $80 per share.
Plaintiff seeks to recover damages on behalf of all purchasers of common stock of Nu Skin during the Class Period. The plaintiff is represented by the Philadelphia-based firm of Barrack, Rodos & Bacine and by the Salt Lake City-based firm of Karrenberg & Anderson, both of which have significant experience in prosecuting class actions on behalf of investors in cases involving financial and corporate fraud.
If you wish to serve as lead plaintiff, you must move the Court no later than March 22, 2014. To discuss your rights regarding the appointment of lead plaintiff and for additional information about your interest in this class action, please contact plaintiff's counsel, Barrack, Rodos & Bacine, at the following toll-free number: 877-386-3304, or via e-mail to Jeffrey W. Golan (email@example.com) or Julie B. Palley (firstname.lastname@example.org). A copy of the complaint is available from the Court or from Barrack, Rodos & Bacine.
SOURCE Barrack, Rodos & Bacine