KO&L LLP Announces That It Has Filed A Class Action Lawsuit Against NutriSystem, Inc.
KO&L LLP has filed a securities class action complaint in the United States District Court for the Eastern District of Pennsylvania on behalf of a Class consisting of all persons other than Defendants who purchased the common stock of NutriSystem, Inc. (“NutriSystem”) (NASDAQ: NTRI - News) between February 14, 2007 and October 3, 2007, inclusive (the “Class Period”), seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”).
The Complaint charges NutriSystem and certain of its officers with violations of the Exchange Act while at the same time selling nearly $7 million in their personal holdings of NutriSystem stock. According to the complaint, during the Class Period, defendants issued materially false and misleading statements that misrepresented and/or failed to disclose: (a) that the Company had been 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; and (c) that the Company’s performance had been negatively impacted by competition from other weight loss products on the market.
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.
