HARTFORD, Conn., June 29, 2004 – LAWFUEL – The law firm of Schatz & Nobel,
P.C., which has significant experience representing investors in prosecuting
claims of securities fraud, announces that a lawsuit seeking class action
status has been filed in the United States District Court for the Eastern
District of New York on behalf of all persons who purchased the publicly
traded securities of NBTY, Inc. (NYSE: NTY) (“NBTY”) between April 22, 2004
and June 16, 2004, inclusive (the “Class Period”).
The Complaint alleges that NBTY, a manufacturer, marketer and retailer of
nutritional supplements, and certain of its officers and directors issued
materially false statements concerning NBTY’s financial condition.
Specifically, defendants failed to disclose: (i) that the Company’s increased
financial results over the prior year were attributable to a shift in the
timing of a promotional mailing, not to any long term improvement at NBTY; and
(ii) that a significant number of customers had shifted to purchasing
supplements in the mass channel area such as drug chains and deep discounters,
thereby negatively impacting the Company’s retail sales at its Vitamin World
chain. As a result of the foregoing, defendants’ positive statements
concerning the Company’s prospects were lacking in a reasonable basis at all
relevant times.
When this information was belatedly disclosed to the market on June 17,
2004, shares of NBTY common stock fell $9.51 per share, or 26%, to close at
$26.99 per share. Prior to the disclosure of this information, NBTY insiders
and other defendants sold 727,200 shares of their personal stock at
artificially inflated prices.
If you are a member of the class, you may, no later than August 23, 2004
request that the Court appoint you as lead plaintiff of the class. A lead
plaintiff is a class member that acts on behalf of other class members in
directing the litigation. 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 make important decisions which could affect the
overall recovery for class members, including decisions concerning settlement.
The securities laws require the Court to consider the class member(s) with the
largest financial interest as presumptively the most adequate lead
plaintiff(s).
For more information about the case, its claims, and your rights, please
contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at
sn06106@aol.com. To view a copy of the lawsuit initiating the class action,
or for more information about class action cases and Schatz & Nobel, please
visit our website: http://www.snlaw.net.
