Natural Health Trendsinvestors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, Natural Health Trends controls subsidiaries that sell personal care, wellness, and “quality of life” products under the “NHT Global” brand. The company’s wholly-owned subsidiaries have an active presence in: North America; Greater China (consisting of Hong Kong, Taiwan and China); South Korea; Japan; and Europe (consisting of Italy and Slovenia). The company sells its products primarily through its network marketing operations, except for China where it sells directly to consumers through an ecommerce platform.
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, the complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose that: (1) the operations of Natural Health Trends’ Chinese entity is not in compliance with applicable Chinese laws; and (2) as a result, the defendants’ statements about Natural Health Trends’ business, operations, and prospects, were false and misleading and/or lacked a reasonable basis at all relevant times.
The Class Period commences after March 6, 2015, when the company filed an annual report on Form 10-K with the SEC for the year ended December 31, 2014.
According to the complaint, on January 7, 2016, Seeking Alpha published a post indicating that a newspaper investigative report published in China revealed that the company is being investigated by Chinese authorities.
Following this news, shares of Natural Health Trends fell $3.11 per share or over 10% from its previous closing price to close at $25.92 per share on January 7, 2016.
Then, on January 12, 2016, analyst firm GeoInvesting, LLC issued a report about Natural Health Trends asserting, among other things, that news broke on several reputable Chinese media sites that morning, including SINA Finance, claiming Natural Health Trends had been raided and is under investigation.
Following this news, shares of Natural Health Trends fell $1.51 per share or over 7% from its previous closing price to close at $19.18 per share on January 12, 2016.
If you are a member of the class described above, you may no later than March 14, 2016 , 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