Nutrition for Life International, Inc. - Securities Class Action

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Copyright (c) 2001
Stanford Law School

Nutrition for Life International, Inc. Conclusion: According to the Company’s Form 10-K for the fiscal year ended September 30, 1997, during August 1997 and September 1997, the Federal Action was settled out of court in two separate settlement agreements for (1) the "distributor" class for all distributors who claimed economic loss, and (2) the "stockholder" class for all individuals who purchased common stock and warrants of the Company from July 11, 1995 through July 16, 1996. As part of the distributor settlement, the Company was required to set aside $1,500,000 in a reserve fund to pay any individuals who became instant executives from April 1995 to January 1996. As part of the stockholders agreement, the Company agreed to pay $2,000,000 in cash to individuals who purchased common stock and warrants from July 11, 1995 through July 16, 1996. In addition, the Company agreed to pay the plaintiffs attorney fees up to $600,000 and $300,000 of the stockholder class and distributor class, respectively.

On Aug. 23, 1996, a class action lawsuit was filed in the District Court of Harris County, Texas, on behalf of purchasers of the common stock and common stock purchase warrants of Nutrition for Life International, Inc. (NFLI) during the period July 11, 1995 through July 16, 1996, inclusive (the Class Period). The complaint charges NFLI, certain of its officers and directors, the lead underwriters of its July 11, 1995 offering of stock and warrants, and a major marketer/distributor Kevin Trudeau and the Trudeau Marketing Group Inc. (collectively Trudeau) with violations of Texas statutory and common law, by, among other things, misrepresenting and/or omitting material information concerning NFLI's business, marketing efforts, sales and earnings during the Class Period (07/11/1995 through 07/11/1996).

INDUSTRY CLASSIFICATION:
SIC Code: 5122
Sector: Consumer Non-Cyclical
Industry: Personal & Household Products

COMPANY/ISSUER NAME:	Nutrition for Life International, Inc.
COMPANY/ISSUER TICKER:	NFLI
COMPANY WEBSITE:	http://nutritionforlife.com/

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

[Unknown Plaintiff], et al. v. Nutrition for Life International, Inc., et al.

COURT: S.D. Texas	DOCKET NUMBER: 96-CV-02678
JUDGE NAME: Hon. Ewing Werlein Jr.
DATE FILED: 08/19/1996	SOURCE: Other
CLASS PERIOD START: 07/11/1995	CLASS PERIOD END: 07/16/1996
TYPE OF COMPLAINT: Unamended/Unconsolidated
PLAINTIFF FIRMS IN THIS OR SIMILAR CASE:
Boies, Schiller & Flexner LLP 570 Lexington Avenue, New York, NY, 10022 (voice) 212.446.2383, (fax) 212.446.2350, Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC) 1100 New York Avenue, N.W., Suite 500, West Tower, Washington, DC, 20005 (voice) 202.408.4600, (fax) 202.408.4699, lawinfo@cmht.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 2

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT

Type:		Date on the document:

REFERENCE COMPLAINT

Victoria Des Versailles, et al. v. Nutrition for Life International, Inc., et al.

COURT: S.D. Texas	DOCKET NUMBER: 96-CV-02678
JUDGE NAME: Hon. Ewing Werlein Jr.
DATE FILED: 02/25/1997	SOURCE: Business Wires
CLASS PERIOD START: 07/11/1995	CLASS PERIOD END: 07/16/1996
TYPE OF COMPLAINT: Fourth Amended
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Boies, Schiller & Flexner LLP 570 Lexington Avenue, New York, NY, 10022 (voice) 212.446.2383, (fax) 212.446.2350, Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC) 1100 New York Avenue, N.W., Suite 500, West Tower, Washington, DC, 20005 (voice) 202.408.4600, (fax) 202.408.4699, lawinfo@cmht.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 2

DOCUMENTS FOR THE REFERENCE COMPLAINT
Order
Type: Order		Date on the document: 12/20/1996
Order
Type: Order		Date on the document: 12/30/1996
Order Preliminarily Approving Settlement of Claims of Distributor Class
Type: Order		Date on the document: 04/03/1997
Final Order and Judgment of Dismissal with Prejudice Regarding Settlement of Claims of the Distributor Class
Type: Order		Date on the document: 08/05/1997
Agreed Order
Type: Order		Date on the document: 08/26/1997
Final Order and Judgment of Dismissal with Prejudice Regarding Settlement of Claims of the Securities Purchaser Class
Type: Order		Date on the document: 09/12/1997
U.S. District Court Civil Docket
Type: Docket		Date on the document: 04/22/1998

OTHER DOCUMENTS

Case Name and/or Number:
Type:		Date on the document:

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