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 failed to disclose material adverse facts about the Company’s true financial condition, business and prospects. Specifically the complaint alleges that defendant failed to disclose that the Company’s retail segment was continuing to dramatically decline, as its ongoing “reinvention plan” was not meeting with success; ongoing changes to the Company’s operating plan brought about through the “reinvention plan” had already rendered the more than $168 million in goodwill being carried on Vitamin Shoppe’s books for the retail segment impaired and Vitamin Shoppe was improperly delaying recognizing that impairment charge; and as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about Vitamin Shoppe’s financial prospects, including the viability of its return to profitability during fiscal 2017, and the success of its reinvention plan.
On April 25, 2018, the Court issued an Order appointing Lead Plaintiffs and Counsel. On May 15, one of the Plaintiffs filed a Notice voluntarily dismissing his claims.