NEW YORK, June 25, 2004 (PRIMEZONE) -- Roy Jacobs & Associates has filed a class action lawsuit on June 24, 2004 in the United States District Court for the Eastern District of New York on behalf of persons who purchased or otherwise acquired publicly traded securities of NBTY, Inc. ("NBTY" or the "Company") (NYSE:NTY) between April 22, 2004 and June 16, 2004, inclusive, (the "Class Period"). The lawsuit was filed against NBTY and its top executives, Scott Rudolph and Harvey Kamil.
For further information you may call toll free, 888-884-4490, or contact Roy Jacobs & Associates by e-mail by writing to classattorney@pipeline.com. The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint asserts that the Company issued false and misleading statements concerning its financial results for the quarter ending March 31, 2004. On April 22, 2004, NBTY announced increased sales in that quarter for its various business segments, including its Direct Response segment, which sells products through catalogs and the internet. The increased sales were attributed to "the Company's ability to more effectively target market its customer base." In truth, the results were due to special sales promotions, and not any generalized improvement in the Company's marketing abilities. Indeed, it is alleged that in the month of April sales in this segment dropped off 14% because the special promotion had ended. Before this decline was revealed to the public, defendant Rudolph sold 400,000 shares for proceeds of over $14 million, while defendant Kamil sold 157,000 shares for proceeds of over $6 million.
On June 17, 2004, NBTY shocked investors by announcing sales declines in the Direct Response segment of 12% for the months of April and May, sending shares plunging from a close of $36.50 the previous day to $26.99 on trading volume of 8.3 million shares.
If you bought NBTY securities between April 22, 2004 and June 16, 2004, inclusive, you may qualify to serve as Lead Plaintiff. Lead Plaintiff papers must be filed with the court no later than August 23, 2004.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca