NEW YORK, Oct. 12, 2007 LAWFUEL – The Legal Newswire — The Brualdi Law Firm
announces that a securities class action lawsuit has been commenced in
the United States District Court for the Eastern District of
Pennsylvania on behalf of a Class consisting of all persons other than
Defendants who purchased the common stock of NutriSystem, Inc.
(“NutriSystem”) (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”).
No class has yet been certified in the above action. Until a class is
certified, you are not represented by counsel unless you retain one.
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.
To be a member of the class you need not take any action at this time,
and you may retain counsel of your choice. If you wish to discuss this
action or have any questions concerning this Notice or your rights or
interests with respect to these matters, please contact Tali Leger,
Director of Shareholder Relations at The Brualdi Law Firm, 29 Broadway,
Suite 2400, New York, New York 10006, by telephone toll free at (877)
495-1877 or (212) 952-0602, by email to tleger@brualdilawfirm.com or
visit our website at http://www.brualdilawfirm.com/
The complaint charges NutriSystem and certain of its officers and
directors with violations of the Exchange Act. The Company provides
weight management and fitness products and services in the United
States.
According to the complaint, during the Class Period, defendants issued
materially false and misleading statements that misrepresented and
failed to disclose: (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; (c) that the Company’s performance was being
negatively impacted by competition from other weight loss products on
the market; and (d) as a result of the foregoing, Defendants lacked a
reasonable basis for their positive statements about the Company and
its prospects.
Then, on October 3, 2007, after the markets closed, the Company
announced 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 $31.59 per share, on extremely
heavy trading volume.
