NEW YORK, Oct. 12, 2007 (PRIME 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.