According to the law firm press release, LifeVantage identifies, researches, develops, and distributes nutraceutical dietary supplements and skin care products. LifeVantage Corporation sells its products through a network of independent distributors and preferred customers in the United States, Japan, Hong Kong, Australia, Canada, the Philippines, Mexico, and Thailand. The Company also sells its products online.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) LifeVantage lacked effective internal financial controls; (ii) as a result, the Company had improperly accounted for sales in certain international markets, along with associated revenue and income tax accruals; and (iii) as a result of the foregoing, LifeVantage’s public statements were materially false and misleading at all relevant times.
On September 13, 2016, post-market, LifeVantage issued a press release and filed a Current Report on Form 8-K with the Securities and Exchange Commission, announcing a delay in the release of the Company’s fourth quarter and fiscal year 2016 financial results, citing an internal review “relate[d] to sales of the Company’s products in certain international markets and the determination of revenue and the deductibility of commission and incentive expenses associated with such sales, as well as the policies and procedures related to sales in those specific markets.”
On this news, LifeVantage stock fell $1.32, or 12.69%, to close at $9.08 on September 14, 2016.
On December 13, 2016, the Court appointed Lead Plaintiffs and Counsel. Lead Plaintiff filed an amended complaint on January 27, 2017.
On June 15, 2017, the Court issued an Order granting Defendants' Motion to Dismiss with leave to amend. On September 18, the Court denied the motion to file a second amended complaint, and thus dismissed this case with prejudice.