According to the law firm press release, GNC is a global specialty retailer of health and wellness products, including vitamins, minerals and herbal supplement products, sports nutrition products and diet products. The Company is headquartered in Pittsburgh, Pennsylvania.
The complaint alleges that during the Class Period, defendants issued false and misleading statements and/or failed to disclose material adverse information regarding GNC’s business and prospects, including, but not limited to: (i) that the Company had been selling certain products as lawful dietary supplements when, in fact, they contain potentially dangerous, unapproved drugs that may not be lawfully sold as dietary supplements in the United States; (ii) that the Company filed documents with the SEC that contained materially false and misleading representations about GNC’s product quality standards and quality controls, risk factors, financial statements and disclosure controls; and (iii) that the Company was experiencing declining supplement sales. Based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company, its 2015 financial outlook, business prospects and future operating performance.
An amended complaint was filed on March 21, 2016.
On September 8, 2017, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiffs were given leave to amend. Plaintiffs declined to file an amended complaint, thus Judgment was entered on October 3. Lead Plaintiff filed a Notice appealing this decision on October 19. On December 11, 2018, the Court of Appeals affirmed the District Court's decision to dismiss the case.