San Diego, CA -- (ReleaseWire) -- 04/21/2014 -- An investigation on behalf of investors who are current long-term investors in shares of Nu Skin Enterprises, Inc. (NYSE:NUS) was initiated concerning whether certain directors and officers of Nu Skin Enterprises, Inc. breached their fiduciary duties and caused damages to Nu Skin Enterprises and NYSE:NUS stockholders.
Investors who purchased shares of Nu Skin Enterprises, Inc. (NYSE:NUS) in July 2013 or earlier and currently hold any of those NYSE:NUS, have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The investigation by a law firm for current long term investors in NYSE:NUS stocks follows a lawsuit filed recently against Nu Skin Enterprises, Inc. over alleged securities laws violations. The investigation on behalf of current long term investors in NYSE:NUS stocks concerns whether certain Nu Skin Enterprises, officers and directors are liable in connection with the allegations made in that lawsuit.
The plaintiff alleges that Nu Skin Enterprises, Inc. violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by allegedly issuing a series of allegedly false and misleading statements concerning the Company's business practices and growth prospects, particularly with respect to its Mainland China operations, upon which the Company has become very dependent for a very significant amount of its revenue and growth.
More specifically, the plaintiff claims that while Nu Skin Enterprises, Inc allegedly issued public statements discussing its positive results and increased guidance, Nu Skin Enterprises, Inc failed to disclose what are alleged to be fraudulent sales practices and non-compliance with laws and regulations in China, or their potential impact on Nu Skin Enterprises, Inc.
On January 15, 2014 a report in the People's Daily, a Chinese newspaper, criticized certain business practices of Nu Skin Enterprises, Inc. The report alleged that Nu Skin Enterprises, Inc. was a “suspected illegal pyramid scheme”. The same day Nu Skin Enterprises said the report contained inaccuracies and exaggerations that are not representative of Nu Skin’s business in China. On January 16, 2014, China’s news agency Zinhau reportedly said that China's State Administration for Industry and Commerce ordered local authorities to investigate media reports that allege Nu Skin Enterprises, Inc. distributes false information and conducts illegal business in China. Shares of Nu Skin Enterprises dropped from $136.47 per share on Jan. 14, 2014 to $70.04 per share on February 6, 2014.
On April 17, 2014, NYSE:NUS shares closed at $86.42 per share.
Those who purchased shares of Nu Skin Enterprises, Inc. (NYSE:NUS) have certain options and should contact the Shareholders Foundation.
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