Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm representing investors, wishes to inform purchasers of Nu Skin Enterprises, Inc. (NYSE: NUS) (“Nu Skin” or “the Company”) stock that the Class Period had been extended to cover investments between Oct. 25, 2011, and Jan. 15, 2014, and that the correct deadline for filing to be a lead plaintiff is March 24, 2014. Investors who suffered significant financial losses related to the case can email NUS@hbsslaw.com for more information.
Two lawsuits have now been filed in the Utah District Court alleging that Nu Skin made false or misleading representations to investors regarding its business in China, and risks to its business. These cases will likely be consolidated into one case. If you wish to serve as a lead plaintiff in these cases, please contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation, by calling (510) 725-3000. Additional information is available at http://hb-securities.com/investigations/NUS.
Nu Skin’s business model, according to the lawsuit, relies on independent distributors who recruit more distributors and then earn a piece of their sales. On Jan. 15, 2014, a Chinese newspaper reported that Nu Skin was in violation of Chinese laws that prohibit pyramid schemes. Two Chinese agencies announced investigations of the company in the days following the publication of the article.
According to the suit, revenue from China played a significant role in the company’s growth over the last several years. The Wall Street Journal reported that sales in China accounted for nearly a third of total sales.Following the announcement of the Chinese government’s investigation, Nu Skin’s stock price declined dramatically, losing nearly half of its value in three days of trading. The stock price fell from a close of $136.47 on Jan. 14, 2014, to a close of $79.57 on Jan. 17, 2014. The stock continues to trade around $80.00, closing at $80.40 on Jan. 27, 2014.
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