GNC Holdings investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, GNC operates as a specialty retailer of health and wellness products.
The Complaint alleges that GNC and certain of its executive officers made a series of false and misleading statements during the Class Period, and failed to disclose material adverse facts about the Company’s business, operations, and prospects.
Specifically, the defendants are alleged to have made materially false and misleading statements to investors and/or failed to disclose that: (1) GNC unlawfully sold thousands of units of products in Oregon that contained picamilon; (2) GNC unlawfully sold thousands of units of products in Oregon that contained BMPEA; and (3) as a result of the foregoing, the Company’s public statements were materially false and misleading at all relevant times.
On October 22, 2015, the Attorney General of Oregon sued GNC claiming that it sold “nutritional and dietary supplements containing the illegal ingredients picamilon and BMPEA.” Among other things, the Attorney General alleged that GNC was “misrepresenting certain products as lawful dietary supplements when they are actually unapproved drugs that may not be lawfully sold in the United States as a dietary supplement.” On this news, shares of GNC’s common stock declined $5.73 per share, more than 14%, to close on October 22, 2015 at $34.50 per share.
According to the recently filed complaint, on October 29, 2015, GNC issued a press release announcing disappointing Third Quarter 2015 financial results. For the quarter, GNC reported a 29% drop in profit and a $28.3 million asset impairment charge associated with its Discount Supplements line of business.
On this additional news, shares of GNC’s common stock declined an additional $10.40 per share, or nearly 27%, to close on October 29, 2015 at $28.24 per share.
If you are a member of the class described above, you may no later than December 28, 2015, move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706