NEW YORK, March 28, 2017 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in USANA Health Sciences, Inc. (“USANA” or the “Company”) (NYSE: USNA ) of the April 14, 2017 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the District of Utah on behalf of all those who purchased USANA securities between March 14, 2014 and February 7, 2017 (the “Class Period”). The case, Rumbaugh v. USANA Health Sciences et al , No. 2:17-cv-00106 was filed on February 13, 2017, and has been assigned to Judge Brooke C. Wells.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) the Company’s BabyCare subsidiary had engaged in improper reimbursement practices in China; (ii) the aforementioned constituted violations of the Foreign Corrupt Practices Act; (iii) consequentially, the Company’s China revenues were, in part, the product of unlawful conduct and unlikely to be sustainable; (iv) the aforementioned conduct, when it became known, was likely to subject the Company to significant regulatory scrutiny; and (v) as a result, USANA’s public statements were materially false and misleading at all relevant times.
Specifically, after-market close on February 7, 2017, the Company disclosed that “[t]he Company is voluntarily conducting an internal investigation of its China operations, BabyCare Ltd. . . . focus[ing] on the compliance with the Foreign Corrupt Practices Act . . . and certain conduct and policies at BabyCare, including BabyCare’s expense reimbursement policies.” Furthermore, USANA advised investors that it retained outside counsel to conduct the investigation and had notified both the Securities and Exchange Commission and the Department of Justice of the investigation.
On this news, USANA’s share price fell from $62.65 per share on February 7, 2017 to a closing price of $55.40 on February 8, 2017 —a $7.25 or a 11.57% drop.
Request more information now by clicking here: www.faruqilaw.com/USNA . There is no cost or obligation to you.
Take Action
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com . Faruqi & Faruqi, LLP also encourages anyone with information regarding USANA’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff. Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP ( www.faruqilaw.com ). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
FARUQI & FARUQI, LLP 685 Third Avenue, 26th Floor New York, NY 10017 Attn: Richard Gonnello, Esq. rgonnello@faruqilaw.com Telephone: (877) 247-4292 or (212) 983-9330
