Robbins Arroyo LLP: LifeVantage Corporation (LFVN) Misled Shareholders According to a Recently Filed Class Action
September 23 2016 - 12:50PM
Business Wire
Shareholder rights law firm Robbins Arroyo LLP announces that a
class action complaint was filed against LifeVantage Corporation
(NASDAQCM: LFVN) in the U.S. District Court for the District of
Utah. The complaint is brought on behalf of all purchasers of
LifeVantage securities between November 4, 2015 and September 13,
2016, for alleged violations of the Securities Exchange Act of 1934
by LifeVantage's officers and directors. LifeVantage identifies,
researches, develops, and distributes nutraceutical dietary
supplements and skin care products.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/lifevantage-corporation
LifeVantage Accused of Misleading Investors About Its
Financial Condition
According to the complaint, throughout the class period,
LifeVantage touted the company's positive financial condition in
press releases and filings with the U.S. Securities and Exchange
Commission ("SEC"). The company stated, "we made progress on our
growth plan that focuses on critical aspects of our business,
including the launch of new technologies, brand differentiation,
the introduction of new products, and international growth."
LifeVantage reiterated its annual guidance and predicted promising
revenue, operating margin, and net income results in fiscal 2016.
The company also highlighted its record revenue performance thus
far, emphasizing positive trends in its existing business along
with accelerated sales growth. Notably, LifeVantage's SEC filings
certified that the financial information was accurate and disclosed
any material changes to the company's internal control over
financial reporting.
However, the complaint alleges that LifeVantage officials failed
to disclose that the company lacked effective internal financial
controls, and as a result, the company had improperly accounted for
sales in certain international markets, along with associated
revenue and income tax accruals. On September 13, 2016, LifeVantage
issued a press release and Form 8-K with the SEC, announcing a
delay in the release of the company's fourth quarter and fiscal
year 2016 financial results. LifeVantage stated that the audit
committee of the company's board of directors was conducting an
independent review and had retained independent counsel to assist
in that review. On this news, LifeVantage stock fell $1.32 per
share, or 12.7%, to close at $9.08 per share on September 14,
2016.
LifeVantage Shareholders Have Legal Options
Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more than
$1 billion of value for themselves and the companies in which they
have invested.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20160923005695/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003DDonahue@robbinsarroyo.comwww.robbinsarroyo.com
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