HARTFORD, Conn., April 4, 2006 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of Utah on behalf of all persons who purchased the common stock of Nature's Sunshine Products, Inc. ("NSPI" or the "Company") (Nasdaq:NATRE) between October 19, 2004 and March 24, 2006, inclusive, (the "Class Period").
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements. Specifically, defendants concealed following: (i) that NSPI lacked requisite internal controls, and, consequently, the Company's projections and reported results were based upon defective assumptions; and (ii) that the Company's financial statements were materially misstated due to its failure to properly account for foreign transactions. As a result of defendants' false statements, NSPI's stock traded as high as $23.24 per share. During the Class Period, while NSPI was trading at artificially inflated prices, top officers sold over $2.9 million worth of their NSPI stock.
On February 17, 2006, NSPI announced that it had expanded a previously announced review of selected financial information concerning certain foreign operations and that it had received notice from Nasdaq that its common stock was subject to delisting. On March 20, 2006, the Company filed an 8-K announcing that its previous financial statements could no longer be relied upon and that it had expanded its investigation to include other matters related to NSPI's financial statements. Then on March 24, 2006, the Company announced that it had received a non-compliance notice from the Nasdaq due to its failure to file its Form 10-K in a timely manner. On this news, NSPI's stock fell to $11.68 per share.
If you are a member of the class, you may, no later than June 2, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.