PHILADELPHIA, Oct. 10, 2007 (PRIME NEWSWIRE) -- Law Offices Bernard M. Gross, P.C. announces that a class action lawsuit has been commenced in the United States District Court for the Eastern District of Pennsylvania, 07cv4215, on behalf of purchasers of the common stock of NutriSystem, Inc. ("NutriSystem" or the "Company")(Nasdaq:NTRI) between February 14, 2007 and October 4, 2007, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act"). The action is pending before the Honorable Marvin Katz.
If you wish to serve as lead plaintiff, you must move the Court no later than December 10, 2007. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Deborah R. Gross or Susan R. Gross at 866-561-3600 or 215-561-3600 or via email at debbie@bernardmgross.com or susang@bernardmgross.com. Any member of the purported 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.
The complaint charges NutriSystem and certain of its officers with violations of the Federal Securities Laws. NutriSystem provides healthy diets plans for men and women.
According to the complaint, during the Class Period, defendants issued materially false and misleading statements that misrepresented and failed to disclose the following: (a) that the Company was signing up fewer new customers and was not performing according to internal expectations; (b) that the Company's costs of acquiring new customers were significantly increasing; and (c) that the company's performance was being negatively impacted by competition. Then, on October 3, 2007, after the market closed, the company issued a press release announcing its preliminary third quarter 2007 results and revised earnings guidance for the full year of 2007. In response to this announcement, the price of NutriSystem common stock fell $15.98 per share, or approximately 34%, to close at $32.59 per share, on extremely heavy trading volume. Additionally, during the class period, the individual defendants and other company insiders sold 305,179 shares of their personally held NutriSystem common stock for gross proceeds in excess of $19.5 million.
Plaintiff seeks to recover damages on behalf of all those who purchased the common stock of NutriSystem (Nasdaq:NTRI) between February 14, 2007 and October 4, 2007. The plaintiff is represented by Law Offices Bernard M. Gross P.C., a Philadelphia law firm, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
If you wish to discuss this action or have any questions concerning this Notice or rights or interests with respect to these matters, please contact:
Law Offices Bernard M. Gross, P.C. Susan R. Gross, Esq. Deborah R. Gross, Esq. 866-561-3600 (toll free) or 215-561-3600 susang@bernardmgross.com or debbie@bernardmgross.com. http://www.bernardmgross.com