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March 19, 2014 /PRNewswire/ -- Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, alerts purchasers of Nu Skin Enterprises, Inc. (NYSE: NUS) ("Nu Skin" or "the Company") stock who purchased between
Oct. 25, 2011 and
Jan. 16, 2014 (the "Class Period") that the company has announced potential sanctions and fines in light of a securities fraud lawsuit, and reminds investors of the
March 24, 2014 deadline to file as a lead plaintiff in the class action. Investors who suffered significant financial losses related to the case can email
NUS@hbsslaw.com for more information.
March 13, 2014, Nu Skin announced in its annual report that it expects to be fined and possibly sanctioned by Chinese regulators who are currently investigating claims that the company operated an illegal pyramid scheme, greatly endangering the investments of its shareholders.
"These other sanctions could include a formal suspension of our ability to recruit new sales people and direct sellers, a temporary suspension of our ability to sell products in various markets or, in the most extreme cases, loss of existing licenses to operate in various jurisdictions in Mainland China," the report states. "Any of these actions or outcomes could materially harm our business and financial condition."
Following this announcement by the company, Nu Skin stock fell four percent to
$73.57 in after-hours trading.
Three lawsuits have been filed in the
Utah District Court alleging that Nu Skin made false or misleading representations to investors regarding its business in
China. These cases will likely be consolidated into one case. If you bought stock in the Company during the Class Period, have significant losses in excess of
$100,000 and 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
Nu Skin's annual report also states that, "The adverse publicity and suspension of business promotional meetings and acceptance of applications has had a significant negative impact on the number of Sales Leaders and Actives, and our revenue in the short term will be negatively impacted by these voluntary actions. Any inability to resume normal business operations in the near term could have a more significant impact on our business."