SAN FRANCISCO, Dec. 21, 2015 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, reminds investors with losses over $100,000 of the upcoming December 28, 2015 lead plaintiff deadline in the securities fraud class action lawsuit filed against GNC Holdings, Inc. (NYSE:GNC) related to sales of products containing banned substances.
If you suffered losses because of your purchase of GNC securities between November 28, 2011 and October 28, 2015, contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000, emailing GNC@hbsslaw.com or visiting https://www.hbsslaw.com/cases/GNC. The lawsuit was filed in the U.S. District Court for the District of Oregon and investors have until December 28, 2015 to move the court to act as lead plaintiff.
On October 22, 2015, the Attorney General of Oregon filed a lawsuit against GNC alleging that the Company knowingly sold products that contain two substances that are not approved for sales in the United States. The unapproved drugs – picamilon and BMPEA – were present in several GNC products for several years. When news of the Attorney General’s lawsuit reached the market, shares of GNC stock declined $5.73 per share to close at $34.50 per share on October 22, 2015, a decline of more than 14%.
One week later, on October 29, 2015, GNC announced disappointing Third Quarter 2015 financial results. For the quarter, GNC reported a 29% drop in profit and a $28.3 million asset impairment charge associated with its Discount Supplements line of business. As a result, shares of GNC's common stock declined an additional $10.40 per share, or nearly 27%, to close on October 29, 2015 at $28.24 per share.
The Complaint alleges that throughout the Class Period, Defendants misled investors by failing to disclose material adverse facts about the Company's business and operations. (1) GNC unlawfully sold thousands of units of products in Oregon that contained picamilon; (2) GNC unlawfully sold thousands of units of products in Oregon that contained BMPEA; and (3) as a result of the foregoing, the Company's public statements were materially false and misleading at all relevant times.
If you experienced a loss in your investments in GNC securities between November 28, 2011 and October 28, 2015, and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, please contact us for your no-cost evaluation.
Whistleblowers: Persons with non-public information regarding GNC should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email GNC@hbsslaw.com.
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Contact: Reed Kathrein, 510-725-3000
Source:Hagens Berman Sobol Shapiro LLP