Vitamin Shoppe, Inc.
ROBBINS GELLER RUDMAN & DOWD LLP FILES CORRECTED CLASS ACTION SUIT AGAINST VITAMIN SHOPPE, INC.
New York – August 31, 2017 – Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/vitaminshoppeinc/) today announced that the complaint filed in the class action commenced on August 28, 2017 in the United States District Court for the District of New Jersey, captioned Aguilar v. Vitamin Shoppe, Inc., et al, No. 2:17-cv-06454, has been corrected to include purchasers of Vitamin Shoppe, Inc. (“Vitamin Shoppe” or the “Company”) (NASDAQ: VSI) common stock during the period between March 1, 2017 and August 8, 2017 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than October 27, 2017. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. If you are a member of this class, you can view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/vitaminshoppeinc/. Any member of the putative 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 Vitamin Shoppe and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Vitamin Shoppe, through its subsidiaries, operates as a specialty retailer and direct marketer of nutritional products in the United States.
The complaint alleges that, during the Class Period, defendants failed to disclose material adverse facts about the Company’s true financial condition, business and prospects. Specifically the complaint alleges that defendants failed to disclose that the Company’s retail segment was continuing to dramatically decline, as its ongoing “reinvention plan” was not meeting with success; ongoing changes to the Company’s operating plan brought about through the “reinvention plan” had already rendered the more than $168 million in goodwill being carried on Vitamin Shoppe’s books for the retail segment impaired and Vitamin Shoppe was improperly delaying recognizing that impairment charge; and as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about Vitamin Shoppe’s financial prospects, including the viability of its return to profitability during fiscal 2017, and the success of its reinvention plan.
On May 10, 2017, Vitamin Shoppe released first quarter 2017 financial results that were lower than the market had been led to expect and slashed its fiscal 2017 guidance by 45%, yet claimed the “reinvention plan” was still succeeding. On this news, the price of Vitamin Shoppe stock declined by one-third to close at $12.70 per share.
Then, on August 9, 2017, Vitamin Shoppe announced that it was taking a $168.1 million impairment charge on the goodwill being carried on its books associated with its retail segment, and that, as a result, Vitamin Shoppe would report a loss per share of $6.73. In addition, citing “the potential increase in variability of the Company’s results due to the number of initiatives being launched in the back half of the year,” Vitamin Shoppe dropped its fiscal 2017 earnings per share guidance altogether. On that day, Vitamin Shoppe’s common stock plunged again, falling $3.50 per share to close at $6.10 per share.
Plaintiff seeks to recover damages on behalf of all purchasers of Vitamin Shoppe common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller is widely recognized as the leading law firm advising and representing U.S. and international investors in securities litigation and portfolio monitoring. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For the third consecutive year, the Firm ranked first in both the total amount recovered for investors and the number of securities class action recoveries in ISS's SCAS Top 50 Report. Robbins Geller attorneys have shaped the law in the areas of securities litigation and shareholder rights and have recovered tens of billions of dollars on behalf of the Firm’s clients. Robbins Geller not only secures recoveries for defrauded investors, it also implements significant corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit rgrdlaw.com/cases/vitaminshoppeinc/ for more information.
Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900
David A. Rosenfeld