PHILADELPHIA – LAWFUEL – The Class Actions Newswire – The law firm of Spector, Roseman & Kodroff, P.C. announces that a securities class action lawsuit was commenced in the United States District Court for the Eastern District of Pennsylvania, on behalf of purchasers of the common stock of NutriSystem, Inc. (“NutriSystem” or the “Company”) (NASDAQ:NTRI) between February 14, 2007 through October 4, 2007, inclusive (the “Class Period”).
The Complaint alleges that during the Class Period, defendants violated the federal securities laws by issuing materially false and misleading statements contained in press releases and filings with the Securities and Exchange Commission. Specifically, the Complaint alleges that NutriSystem and certain of its officers and directors (“defendants”) violated federal securities laws while at the same time defendants and other insiders sold over $19.5 million in their personal holdings of NutriSystem stock. According to the Complaint, defendants issued materially false and misleading statements that misrepresented and/or failed to disclose that: (a) the Company had been signing up fewer new customers and was not performing according to internal expectations; (b) the Company’s costs of acquiring new customers were significantly increasing; and (c) the Company’s performance had been negatively impacted by competition from other weight loss products on the market. As a result, the defendants lacked a reasonable basis for their positive statements about the Company and its prospects, which artificially inflated NutriSystem stock to Class Period highs exceeding $70 per share.
After the markets closed on October 3, 2007, 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 purchased NutriSystem securities during the Class Period, you may, no later than December 10, 2007, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, which acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the “largest financial interest” in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the “largest financial interest,” and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.
If you have sustained substantial losses in NutriSystem securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at [email protected] for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
If you wish to join this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Robert M. Roseman or David Felderman toll-free at 888-844-5862 or via e-mail at [email protected] For more detailed information about the firm please visit its website at http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pa., concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm’s reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered through judgments and settlements on behalf of thousands of defrauded shareholders and companies.