NEW YORK, Nov. 26, 2007 LAWFUEL – The US Litigation Newswire — Kirby McInerney LLP announces that a class action lawsuit has been filed in the United States District Court for the Eastern District of Pennsylvania on behalf of all persons who purchased or otherwise acquired the publicly traded securities of NutriSystem, Inc. (“NutriSystem” or the “Company”)
(Nasdaq:NTRI) between February 14, 2007 and October 4, 2007, inclusive, (the “Class Period”).
The Complaint charges NutriSystem and certain of its officers and directors with violations of the Securities Exchange Act of 1934.
NutriSystem is a marketer and provider of weight management systems based on a portion-controlled, prepared-meal program.
According to the complaint, during the Class Period, defendants issued materially false and misleading statements that misrepresented and failed to disclose: (a) that the Company was signing up fewer new customers and was not performing according to internal expectations;
(b) that the Company’s costs of acquiring new customers were significantly increasing; (c) that the Company’s performance was being negatively impacted by competition from other weight loss products on the market; and (d) as a result of the foregoing, Defendants lacked a reasonable basis for their positive statements about the Company and its prospects.
Then, on October 3, 2007, after the markets closed, the Company announced its preliminary third quarter 2007 results and revised earnings guidance for the full year of 2007. In response to this announcement, the price of NutriSystem common stock fell $15.98 per share, or approximately 34%, to close at $31.59 per share, on extremely heavy trading volume.
If you are a member of the class, you may, no later than December 10, 2007, request that the Court appoint you as lead plaintiff of the class. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs can participate in important decisions which could affect the recovery for class members.
If you wish to discuss this action, or have any questions concerning this notice or your rights, please contact us, toll free, at (888)
529-4787 or by email at [email protected]
Kirby McInerney LLP has specialized in complex litigation, including securities class actions, for several decades. The firm has repeatedly demonstrated its expertise in this field, and has been recognized by various courts which have appointed the firm to major positions in consolidated and multi-district litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and the firm’s achievements and quality of service have been chronicled in numerous published decisions. More information about the firm, class actions in general, or about the role of the lead plaintiffs in a securities class action can be obtained through Kirby McInerney LLP’s website at http://www.kmllp.com