NEW YORK, NY / ACCESSWIRE / October 23, 2017 / Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Vitamin Shoppe, Inc. ('Vitamin Shoppe' or the 'Company') (NYSE: VSI) of the October 27, 2017 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Vitamin Shoppe stock or options between March 1, 2017 and August 8, 2017 and would like to discuss your legal rights, click here: www.faruqilaw.com/VSI. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail torgonnello@faruqilaw.com.
The lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of all those who purchased Vitamin Shoppe common stock between March 1, 2017 and August 8, 2017 (the 'Class Period'). The case, Aguilar v. Vitamin Shoppe, Inc. et al, No. 2:17-cv-06454 was filed on August 28, 2017.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Vitamin Shoppe's retail segment was continuing to significantly decline, as its ongoing 'reinvention plan' was not meeting with success; (2) ongoing changes to Vitamin Shoppe'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; (3) and as a result, Vitamin Shoppe lacked a reasonable basis for their positive statements about its financial prospects.
Specifically, on May 10, 2017, Vitamin Shoppe released its first quarter 2017 financial results and slashed its fiscal 2017 guidance by 45%, yet claimed the 'reinvention plan' was still succeeding. On this news, Vitamin Shoppe's share price fell from $19.00 per share on May 9, 2017 to a closing price of $12.70 on May 10, 2017 - a $6.30 or a 33.16% drop.
Then, on August 9, 2017, Vitamin Shoppe announced that it was taking a $168.1 million impairment charge on the goodwill being carried on its books associated with its retail segment. As a result, the Company would report a 'GAAP loss per share of $6.73' in its second quarter 2017. On this news, Vitamin Shoppe's share price fell from $9.60 per share on August 8, 2017 to a closing price of $6.10 on August 9, 2017 - a $3.50 or a 36.46% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Vitamin Shoppe's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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SOURCE: Faruqi & Faruqi, LLP
