Case Page

 

Case Status:    SETTLED
On or around 09/15/1997 (Date of order of final judgment)

Filing Date: August 19, 1996

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).

COMPANY INFORMATION:

Sector: Consumer Non-Cyclical
Industry: Personal & Household Products
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: NFLI
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. Texas
DOCKET #: 96-CV-02678
JUDGE: Hon. Ewing Werlein Jr.
DATE FILED: 08/19/1996
CLASS PERIOD START: 07/11/1995
CLASS PERIOD END: 07/16/1996
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Boies, Schiller & Flexner LLP (New York)
    575 Lexington Avenue, Boies, Schiller & Flexner LLP (New York), NY 10022
    212.446.2383 212.446.2350 ·
  2. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC)
    1100 New York Avenue, N.W., Suite 500, West Tower, Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC), DC 20005
    202.408.4600 202.408.4699 · lawinfo@cmht.com
No Document Title Filing Date
COURT: S.D. Texas
DOCKET #: 96-CV-02678
JUDGE: Hon. Ewing Werlein Jr.
DATE FILED: 02/25/1997
CLASS PERIOD START: 07/11/1995
CLASS PERIOD END: 07/16/1996
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Boies, Schiller & Flexner LLP (New York)
    575 Lexington Avenue, Boies, Schiller & Flexner LLP (New York), NY 10022
    212.446.2383 212.446.2350 ·
  2. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC)
    1100 New York Avenue, N.W., Suite 500, West Tower, Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC), DC 20005
    202.408.4600 202.408.4699 · lawinfo@cmht.com
No Document Title Filing Date