RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Vitamin Shoppe, Inc. (NYSE: VSI) (“Vitamin Shoppe” or the “Company”) securities between March 1, 2017 and August 6, 2017, inclusive (the “Class Period”).
Vitamin Shoppe shareholders may, no later than October 27, 2017, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Vitamin Shoppe and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The Complaint alleges that, throughout the Class Period, Vitamin Shoppe made false and/or misleading statements and/or failed to disclose that: (1) the Company’s retail segment was suffering a severe decline due to a lack of success with its ongoing reinvention strategy; (2) changes to the Company’s operating plan had rendered the more than $168 million in goodwill being carried on Vitamin Shoppe’s books for the retail segment impaired; (3) the Company inappropriately delayed recognizing the impairment charge; and (4) as a result, defendants’ public statements about the Company’s financial prospects and the success of its reinvention plan were materially false and misleading at all relevant times.
On May 10, 2017, Vitamin Shoppe released first quarter 2017 financial results that were lower than the market had been led to expect and slashed its fiscal 2017 guidance by 45%, yet claimed the “reinvention plan” was still succeeding.
On this news, the price of Vitamin Shoppe stock declined by 33%, to close at $12.70 per share.
Subsequently on August 9, 2017, Vitamin Shoppe announced that it was taking a $168.1 million impairment charge on the goodwill being carried on its books associated with its retail segment, and that, as a result, Vitamin Shoppe would report a loss per share of $6.73. In addition, citing “the potential increase in variability of the Company’s results due to the number of initiatives being launched in the back half of the year,” Vitamin Shoppe withdrew its fiscal 2017 earnings per share.
On that day, Vitamin Shoppe’s common stock plunged again, falling $3.50 per share to close at $6.10 per share.
If you are a member of the class, you may, no later than October 27, 2017, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.