Saxena White P.A. Files Securities Fraud Class Action Against Vitamin-Maker Vitacost.com, Inc.
29 5월 2010 - 10:00AM
Marketwired
In a class action filed on Monday, May 24, 2010, Boca Raton-based
Vitacost.com, Inc. ("Vitacost" or the "Company") (NASDAQ: VITC) and
several of its executives and directors, including its CEO and CFO,
were sued for violations of the federal securities laws, including
securities fraud. Vitacost operates as an online retailer and
direct marketer of vitamins and other health products. According to
the lawsuit, the Company's executives, among other violations,
artificially inflated Vitacost stock by releasing false and
misleading information regarding the Company's financial results
and business prospects. As a result of these violations, Vitacost
shareholders lost millions of dollars in damages.
Saxena White P.A. commenced the class action in the United
States District Court for the Southern District of Florida on
behalf of all persons or entities who purchased shares of Vitacost
common stock pursuant and/or traceable to the Company's Initial
Public Offering commencing on or about September 24, 2009 (the
"IPO") and on behalf of purchasers of the Company's common stock
between September 24, 2009 and April 20, 2010, inclusive (the
"Class Period").
The complaint alleges that throughout the Class Period
defendants knew or recklessly disregarded that their public
statements concerning Vitacost's financial performance were
materially false and misleading and failed to disclose: (1) that
the Company was starting a product-mix shift away from their
traditional high-margin proprietary products; (2) that Vitacost
inflated demand for its proprietary products; (3) that the Company
was pushing out excess product to customers so that it could mask
declining demand; (4) that Vitacost was experiencing logistical
issues at its own plants; (5) that the Company lacked significant
oversight processes and procedures and utilized ineffective
operations software, despite knowing that those issues existed; (6)
that, as a result, Vitacost's financial results were materially
inflated at all relevant times; (7) that the Company lacked
adequate internal and financial controls; and (8) that Vitacost's
projections regarding future growth lacked in any reasonable basis
when made.
On April 20, 2010, after the close of the market, Vitacost
issued a press release in which it announced updated guidance for
revenue and earnings per share for the first quarter ending on
March 31, 2010 and full year 2010. Contrary to the defendants'
prior statements in which they emphasized the Company's strong
business prospects and growth strategies, Vitacost slashed its
first-quarter and full-year profit and revenue estimates, citing
disappointing sales along with manufacturing problems. On this
news, shares of Vitacost stock plunged $3.02 per share, or 24
percent, to close on April 21, 2010 at $9.54 per share on unusually
heavy volume.
You may obtain a copy of the complaint and join the class action
at www.saxenawhite.com. If you purchased Vitacost stock between
September 24, 2009 and April 20, 2010, you may contact Joe White or
Greg Stone at Saxena White P.A. to discuss your rights and
interests.
If you purchased Vitacost shares in the Class Period, including
purchases made pursuant to the September 24, 2009 Initial Public
Offering, and wish to apply to be the lead plaintiff in this
action, a motion on your behalf must be filed with the Court no
later than July 23, 2010. You may contact Saxena White P.A. to
discuss your rights regarding the appointment of lead plaintiff and
your interest in the class action. Please note that you may also
retain counsel of your choice and need not take any action at this
time to be a class member.
Saxena White P.A., which has offices in Boca Raton and Boston,
specializes in prosecuting securities fraud and complex class
actions on behalf of institutions and individuals. Currently
serving as lead counsel in numerous securities fraud class actions
nationwide, the firm has recovered hundreds of millions of dollars
on behalf of injured investors and is active in major litigation
pending in federal and state courts throughout the United
States.
Joseph E. White, III jwhite@saxenawhite.com Greg Stone
gstone@saxenawhite.com Saxena White P.A. 2424 North Federal
Highway, Suite 257 Boca Raton, FL 33431 Tel: (561) 394-3399 Fax:
(561) 394-3382 www.saxenawhite.com
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