Lawsuit Overview
Settlement Overview
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The settlement includes all persons who purchased or otherwise acquired the publicly traded common stock of Nu Skin Enterprises Inc, including call and put options on such publicly traded common stock, during the period between May 4, 2011 and January 17, 2014.
October 13, 2016 - The court approved the settlement and entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissing the action with prejudice.
May 24, 2016 - The court preliminarily approved the settlement.
May 20, 2016 - Parties filed a stipulation of settlement.
February 26, 2015 - The court denied the defendants' motion to dismiss.
August 29, 2014 - Defendants filed a motion to dismiss.
June 30, 2014 - The lead plaintiff filed an amended consolidated complaint on behalf of investors who purchased Nu Skin Enterprises Inc (NYSE: NUS) common shares between May 4, 2011 and January 17, 2014. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between May 4, 2011 and January 17, 2014.
May 1, 2014 - The lead plaintiff and lead counsel were appointed and all cases were consolidated.
March 24, 2014 - Lead plaintiff motions were filed.
January 21, 2014 - An investor in shares of Nu Skin Enterprises Inc (NYSE: NUS) filed a lawsuit in the U.S. District Court for the District of Utah against Nu Skin Enterprises over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between July 10, 2013 and January 14, 2014.
According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of Nu Skin Enterprises Inc (NYSE: NUS) between July 10, 2013 and January 14, 2014, that Nu Skin Enterprises Inc and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by allegedly issuing a series of allegedly false and misleading statements concerning the Company's business practices and growth prospects, particularly with respect to its Mainland China operations, upon which Nu Skin Enterprises Inc has become very dependent for a very significant amount of its revenue and growth.
More specifically, the plaintiff claims that while Nu Skin Enterprises, Inc allegedly issued public statements discussing its positive results and increased guidance, Nu Skin Enterprises Inc failed to disclose what are alleged to be fraudulent sales practices and non-compliance with laws and regulations in China, or their potential impact on Nu Skin Enterprises Inc.
Nu Skin Enterprises Inc reported that its annual Total Revenue rose from over $1.33 billion in 2009 to over $2.16 billion in 2012 and that its respective Net Income increased from $89.84 million to $221.65 million. Nu Skin Enterprises Inc reported that its quarterly Total Revenue rose from $550.09 million in the first quarter 2013 to $927.61 million in the third quarter 2013 and that its respective quarterly Net Income increased from $54.28 million to $110.90 million.
Shares of Nu Skin Enterprises Inc (NYSE: NUS) grew from $9.55 per share in March 2009 to as high as $138.66 per share in late 2013.
Then on January 15, 2014 a report in the People's Daily, a Chinese newspaper, criticized certain business practices of Nu Skin Enterprises Inc The report alleged that Nu Skin Enterprises Inc was a “suspected illegal pyramid scheme”. The same day Nu Skin Enterprises Inc said the report contained inaccuracies and exaggerations that are not representative of Nu Skin Enterprises Inc’s business in China.
On January 16, 2014, China’s news agency Zinhau reportedly said that China's State Administration for Industry and Commerce ordered local authorities to investigate media reports that allege Nu Skin Enterprises Inc distributes false information and conducts illegal business in China.
Shares of Nu Skin Enterprises Inc (NYSE: NUS) dropped from $136.47 per share on Jan. 14, 2014 to $70.90 per share on Jan. 16, 2014