USANA Health Sciences, Inc.
Class Period: Mar 14, 2014 to Feb 7, 2017
Lead Plaintiff Deadline: Apr 14, 2017
Summary of Case:
A securities class action has been filed against USANA Health Sciences, Inc. ("USANA") on behalf of all those who purchased or otherwise acquired USANA between March 14, 2014 through February 7, 2017. This case has been filed in the USDC - Utah.
The Complaint alleges as follows: Throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company's BabyCare Ltd. ("BabyCare") subsidiary had engaged in improper reimbursement practices in China; (ii) these practices constituted violations of the Foreign Corrupt Practices Act; (iii) as such, the Company's China revenues were in part the product of unlawful conduct and unlikely to be sustainable; (iv) the foregoing conduct, when it became known, was likely to subject the Company to significant regulatory scrutiny; and (v) as a result of the foregoing, USANA's public statements were materially false and misleading at all relevant times.
On February 7, 2017, post-market, USANA disclosed that 'the Company is voluntarily conducting an internal investigation of its China operations, BabyCare Ltd. focusing on the compliance with the Foreign Corrupt Practices Act and certain conduct and policies at BabyCare, including BabyCare's expense reimbursement policies.' USANA advised investors that the Company had retained outside counsel to conduct the investigation and had notified both the Securities and Exchange Commission and the U.S. Department of Justice of the investigation.
On this news, USANA's share price fell $7.25, or 11.57%, to close at $55.40 on February 8, 2017.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.