According to the Complaint, Natural Health Trends Corp. operates as an international direct-selling and e-commerce company that sells personal care and wellness products. The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Natural Health Trends was operating as a pyramid scheme in China, which is contrary to Chinese law; (2) consequently, Natural Health Trends was not in compliance with applicable Chinese law; and (3) as a result, Defendants’ statements about Natural Health Trends’ business, operations, and prospects were false and misleading and/or lacked a reasonable basis at all relevant times.

On May 3, 2019, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on June 3. Defendants filed a Motion to Dismiss the amended Complaint on September 7. On December 20, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiffs were given leave to amend the Complaint. On January 13, 2020, Plaintiff filed a “Notice of Intent Not to File Second Amended Complaint.” On January 17, the Court dismissed the case with prejudice. Lead Plaintiff filed a notice appealing the Dismissal Order on February 14. The appeal was voluntarily dismissed on April 14, 2020.