San Diego, CA -- (SBWIRE) -- 01/27/2014 -- An investor, who purchased shares of Nu Skin Enterprises, Inc. (NYSE:NUS), filed a lawsuit in the U.S. District Court for the District of Utah over alleged violations of Federal Securities Laws by Nu Skin Enterprises, Inc. in connection with certain allegedly false and misleading statements made between July 10, 2013 and January 14, 2014.
If you purchased a significant amount of shares of Nu Skin Enterprises, Inc. (NYSE:NUS) between July 10, 2013 and January 14, 2014, and/or if you purchased NYSE:NUS shares in 2013 or earlier and currently hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: March 24, 2014. NYSE:NUS investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
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 the Company 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 said the report contained inaccuracies and exaggerations that are not representative of Nu Skin’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 dropped from $136.47 per share on Jan. 14, 2014 to $70.90 per share on Jan. 16, 2014.
On Jan. 24, 2014, NYSE:NUS shares closed at $76.89 per share.
Those who purchased shares of Nu Skin Enterprises, Inc. (NYSE:NUS) have certain options and should contact the Shareholders Foundation.
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