NEW YORK, Nov. 19, 2015 /PRNewswire/ -- Robbins Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/gnc/) today announced that a class action has been commenced in the United States District Court for the Western District of Pennsylvania on behalf of purchasers of GNC Holdings, Inc. ("GNC" or the "Company") (NYSE:GNC) Class A common stock during the period between November 28, 2011 and October 28, 2015, inclusive (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from October 29, 2015. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at [email protected]. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/gnc/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges GNC and certain of its officers and directors with violations of the Securities Exchange Act of 1934. GNC is a global specialty retailer of health and wellness products, including vitamins, minerals and herbal supplement products, sports nutrition products and diet products. The Company is headquartered in Pittsburgh, Pennsylvania.
The complaint alleges that during the Class Period, defendants issued false and misleading statements and/or failed to disclose material adverse information regarding GNC's business and prospects, including, but not limited to: (i) that the Company had been selling certain products as lawful dietary supplements when, in fact, they contain potentially dangerous, unapproved drugs that may not be lawfully sold as dietary supplements in the United States; (ii) that the Company filed documents with the SEC that contained materially false and misleading representations about GNC's product quality standards and quality controls, risk factors, financial statements and disclosure controls; and (iii) that the Company was experiencing declining supplement sales. Based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company, its 2015 financial outlook, business prospects and future operating performance.
On October 22, 2015, Oregon Attorney General Ellen Rosenblum filed a lawsuit against GNC alleging that the Company sold nutritional and dietary supplements containing the illegal ingredients picamilon and BMPEA, both of which are synthetic ingredients that are not lawful dietary ingredients in the United States. When Reuters and CNBC made public the allegations in the Oregon Attorney General's lawsuit, the price of the Company's shares fell more than 14%. Then on October 29, 2015, GNC issued a press release announcing its financial results for the quarter ended September 30, 2015. For the quarter, GNC reported a 29% drop in profit, in part due to a 2.7% decline in revenue and a $28.3 million asset impairment charge associated with its Discount Supplements line of business. In response to these revelations, the price of GNC common shares fell an additional 26.9%.
Plaintiff seeks to recover damages on behalf of all purchasers of GNC Class A common stock during the Class Period (the "Class"). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S. and international institutional investors in contingency-based securities and corporate litigation. The firm has obtained many of the largest securities class action recoveries in history and was ranked first in both the amount and number of shareholder class action recoveries in ISS's SCAS Top 50 report for 2014. Please visit http://www.rgrdlaw.com/cases/gnc/ for more information.
SOURCE Robbins Geller Rudman & Dowd LLP