HARTFORD, Conn., Oct. 10, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard 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 Eastern District of Pennsylvania on behalf of all persons who purchased the common stock of NutriSystems, Inc. ("NutriSystems") (Nasdaq:NTRI) between February 14, 2007 and October 4, 2007, inclusive (the "Class Period").
The Complaint charges that NutriSystems and certain of its officers and directors violated federal securities laws. Specifically, during the Class Period, defendants issued materially false and misleading statements that misrepresented and failed to disclose: (i) that the Company was signing up fewer new customers and was not performing according to internal expectations; (ii) that the Company's costs of acquiring new customers were significantly increasing; (iii) that the Company's performance was being negatively impacted by competition from other weight loss products on the market; and (iv) as a result of the foregoing, Defendants lacked a reasonable basis for their positive statements about the Company and its prospects.
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.
If you are a member of the class, you may, no later than December 10, 2007, 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 Izard P.C. 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 Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.