SAN DIEGO and NORTH BERGEN, N.J., May 10, 2013 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP announce that a purchaser of Vitamin Shoppe, Inc. (NYSE: VSI) securities has filed a complaint in the U.S. District Court for the District of New Jersey. The complaint alleges that Vitamin Shoppe and certain of its officers and directors violated the Securities Exchange Act of 1934 between May 8, 2012 and February 25, 2013 (the "Class Period").
Vitamin Shoppe Accused of Making False and Misleading Statements Concerning the Company's Business and Operations While Insiders Sell Their Stock
The complaint alleges that during the Class Period, Vitamin Shoppe and certain if its officers and directors issued a series of materially false and misleading statements concerning the true nature of the company's operations and sales trends. Specifically, the complaint alleges that certain officers and directors of the company failed to disclose that Vitamin Shoppe's performance was being negatively impacted because of: (i) competition from discount on-line retailers; (ii) competitor GNC's new discount program; and (iii) declining same-store sales trends. As a result of these false and misleading statements, Vitamin Shoppe's stock traded at artificially inflated prices during the Class Period, reaching a high of $65.93 per share on February 19, 2013, during which time company insiders sold more than $30 million of their company stock at inflated prices.
Vitamin Shoppe Stock Price Drops on Slowdown in Revenue Growth
On February 25, 2013, the complaint alleges, Vitamin Shoppe issued financial results significantly below the lower than the strong forward guidance issued throughout the Class Period, revealing the Company's true business health. On this news, Vitamin Shoppe's stock price dropped 18.76%, or $11.86 per share, to close at $51.36 per share.
If you purchased or otherwise acquired Vitamin Shoppe stock during the Class Period and wish to serve as lead plaintiff, you must act no later than July 8, 2013. To discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, [email protected], or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsarroyo.com.
Press release link: http://www.robbinsarroyo.com/shareholders-rights-blog/vitamin-shoppe-inc/
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SOURCE Robbins Arroyo LLP