SAN DIEGO, April 28, 2016 /PRNewswire/ -- Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating potential violations of the federal securities laws by GNC Holdings, Inc. (NYSE: GNC) and certain of its officers. GNC operates as a specialty retailer of health and wellness products.
On April 28, 2016, GNC reported first quarter 2016 earnings of $0.69 per share, $0.05 worse than consensus analyst estimates of $0.74; revenues fell 1.8% year/year to $668.9 million compared to Wall Street's $668.32 million estimate. GNC also issued downside guidance for FY16, now projects EPS of $2.80-$2.90 down from prior guidance of $3.15 to $3.35.
This news was preceded by a class action lawsuit that GNC now faces stemming from the October 22, 2015 announcement that Oregon's attorney general charged GNC with knowingly selling products spiked with two synthetic drugs. According to the reports, the suit accuses GNC of selling thousands of units of 22 workout and fat-burner supplement products that contained picamilon, a drug used to treat neurological conditions. The suit also alleges that GNC sold other workout and weight-loss supplements that contained a synthetic amphetamine-like chemical known as Beta-methylphenethylamine.
Regarding the class action lawsuit, if you are a long-term shareholder of GNC, continuously holding shares prior to December 2011, you may have standing to hold the Company harmless from the damage the officers and directors caused by making them personally responsible. You may also be able to assist in reforming GNC's corporate governance to prevent future wrongdoing.
If you are interested in learning more about the investigation or your legal rights and remedies, please contact Jim Baker ([email protected]) at 619-814-4471. If you email, please include your phone number.
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.