According to reports, things became dire for shareholders of GNC when the Attorney General for the state of Oregon accused GNC of “willfully and repeatedly” vending herbal supplements that were mislabeled, and launched an herbal supplement lawsuit against the firm.
The trouble for shareholders began with the issuance of a cease-and-desist order by the attorney general’s office of New York State, the latter also accusing GNC of selling mislabeled products. That was in February of this year. Stock prices for GNC began falling after the New York announcement, with stock prices tumbling a further 43 percent since August 5.
Things became worse after the Oregon herbal supplement lawsuit was made public in October, with steep declines in share price.
As a result, GNC shareholders have launched their own herbal supplement lawsuit, joining a chorus of similar actions on the part of herbal supplement consumers incensed at the thought that what was printed on the product label was not necessarily what they were ingesting in their bodies.
“The declines in the price of GNC common stock after the corrective disclosures came to light was a direct result of the nature and extent of defendants’ fraudulent misrepresentations being revealed to investors and the market,” the shareholder lawsuit says.
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The herbal supplements shareholders lawsuit reflects the interests of shareholders for the time window of November 28, 2011 through to October 28 of this year. The complaint alleges violations of the Exchange Act through deliberately misleading actions.
The herbal supplement lawsuit is James Martin et al. v. GNC Holdings Inc. et al, Case number 2:15-cv-01522, in the US District Court for the Western District of Pennsylvania.