According to the law firm press release, Vitamin Shoppe, through its subsidiaries, operates as a specialty retailer and direct marketer of nutritional products in the United States.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s operations, business trends and same-store sales trends. Specifically, defendants failed to disclose that: (i) Vitamin Shoppe’s business was then being negatively impacted by competition from on-line retailers which were significantly reducing prices on popular supplements; (ii) GNC’s new discount program was negatively impacting the Company’s sales growth; and (iii) the Company was experiencing declining same-store sales trends. As a result of defendants’ false and misleading statements, Vitamin Shoppe common stock traded at artificially inflated prices, enabling Company insiders to sell more than $30 million of their personally held Vitamin Shoppe common stock at inflated prices during the Class Period.
Then, on February 25, 2013, according to the complaint, after guiding toward strong fiscal 2012 sales and profits during the Class Period, Vitamin Shoppe announced lackluster financial results for the Company’s fiscal and fourth quarter 2012. In response, the price of the Company’s stock fell $11.86 per share, or more than 18.76% that day.
On August 9, 2013, the Beaver County Employees Retirement Fund was appointed Lead Plaintiff for the Class and Robbins Geller Rudman & Dowd LLP was appointed Lead Counsel.
On November 4, 2013, pursuant to Federal Rule of Civil Procedure 41(a)(l)(A)(ii), the case voluntarily dismissed without prejudice as to the class and with prejudice as to the Lead Plaintiff.