SAN DIEGO and PROVO, Utah, Feb. 4, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of Nu Skin Enterprises, Inc. (NYSE: NUS) has filed a federal securities fraud class action complaint in the U.S. District Court for the District of Utah, Central Division. The complaint alleges that the company and certain of its officers violated the Securities and Exchange Act of 1934 between July 10, 2013 and January 14, 2014 (the "Class Period"). Nu Skin develops and distributes anti-aging personal care products and nutritional supplements under the Nu Skin and Pharmanex brands.
Nu Skin Is Accused of Failing to Disclose Fraudulent Sales Practices
According to the complaint, shares of Nu Skin common stock lost approximately 18% of its value, falling more than $21 per share to close at $115.23 on January 15, 2014, on news that the company's Chinese operations were in violation of Chinese law and suspected of being a pyramid scheme. Nu Skin shares declined an additional $30.43, or 26% the following day to close at $84.80 in January 16, 2014. Finally, the company's stock dropped an additional $5.23 to close at $79.57on January 17, 2014, on news that China's Ministry of Commerce announced that it would initiate an investigation into the company's practices.The complaint also alleges that Nu Skin made materially false and misleading statements to investors regarding its business and financial prospects. Specifically, Nu Skin failed to disclose that: (i) the company was in violation of local laws and regulations in China because of its sales and business practices; (ii) the company failed to disclose that these violations would have a negative impact on the company; and (iii) that the company failed to disclose that its much touted growth was unsustainable without its China business. Nu Skin Shareholders Are Encouraged to Contact Shareholder Rights Law Firm Robbins Arroyo If you invested in Nu Skin and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the information form on the firm's shareholder rights blog: http://www.robbinsarroyo.com/shareholders-rights-blog/nu-skin-enterprises-inc Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Attorney Advertising. Past results do not guarantee a similar outcome.